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A record 300 million smartphones were shipped during the second quarter of 2014: IDC

8:32AM | Monday, 18 August

The worldwide market for smartphones hit a record 301.3 million units worldwide during the second quarter, according to the latest Worldwide Quarterly Mobile Phone Tracker.   To put the market size into perspective, the worldwide market for PCs stands at around 75.5 million units per quarter, meaning that there are now just under four smartphones sold each quarter for each PC.   The overwhelming majority of smartphones shipped worldwide during the second quarter ran Android, with the platform claiming 255.3 million units and 84.7% market share. This was up 33.3% from 191.5 million units and 79.6% market share during the same quarter a year earlier.   In a statement, IDC mobile phone team research manager Ramon Llamas says Android is making significant gains in emerging markets.   "During the second quarter, 58.6% of all Android smartphone shipments worldwide cost less than $200 off contract, making them very attractive compared to other device," Llamas says.   "With the recent introduction of Android One, in which Google offers reference designs below $100 to Android OEMs, the proportion of sub-$200 volumes will climb even higher."   Within the Android market, IDC previously released figures showing Samsung claimed a market share of 25.2% off 74.3 million units, down by 3.9% from 77.3 million a year earlier.   By comparison, Apple and iOS smartphones now make up just 11.7% of the market off shipments of 35.2 million units, with the company’s share of the market falling slightly from 13% a year earlier.   Meanwhile, Windows Phone shipments fell to 7.4 million units, down 9.4% from 8.2 million a year earlier, while BlackBerry’s fell a massive 78% from 6.7 million units a year ago to just 1.5 million.   This article originally appeared on SmartCompany.

Apple iPad and Samsung duopoly slips as tablet market grows 11%: IDC

7:57PM | Sunday, 27 July

Tablet sales surged by 11% year-on-year during the second quarter of 2014, despite sales of Apple’s iPad plunging by 9.3% over the same period, according to new figures from IDC.   The figures, compiled from IDC’s Worldwide Quarterly Tablet Tracker, shows total shipments of tablets grew to 49.3 million units during the second quarter, up from 44.4 million a year earlier. The figures include sales of both traditional slate tablets, as well as “two-in-one” devices such as the Microsoft Surface.   Apple remains the largest competitor with a market share of 26.9%. However, its worldwide shipments for the quarter dropped to 13.3 million units, down from 14.6 million for the same quarter a year earlier.   Despite Apple’s falls, Samsung’s sales remained close to flat, growing from 8.4 million units a year ago to 8.5 million for the same quarter this year. Despite the small increase in volume, the South Korean tech giant’s market share dipped from 18.8% to 17.2%.   The big winner in the market was third-place Lenovo, which saw its tablet volumes grow 64.7%, from 1.5 million units during the second quarter of 2013 to 2.4 million this year.   Rounding out the top five were Asus, which shipped 2.3 million units during the quarter, and Acer, which shipped 1 million.   The 21.9 million units is divided between a range of smaller Android and Windows tablet makers, including Microsoft, with each shipping less than 1 million units.   In a statement, IDC research analyst Jitesh Ubrani says Apple and Samsung’s stranglehold over the tablet market is slipping.   “Until recently, Apple, and to a lesser extent Samsung, have been sitting at the top of the market, minimally impacted by the progress from competitors," Ubrani says.   "Now we are seeing growth amongst the smaller vendors and a levelling of shares across more vendors as the market enters a new phase.”   Image credit: Flickr/ m01229

Apple declares jump in profit, despite surprise 16% drop in iPad shipments

4:33AM | Thursday, 24 April

Apple has announced a 7% jump in net profit along with a seven-for-one stock split, despite an alarming 16% year-on-year drop in iPad unit shipments.   The iPhone maker beat analysts’ forecasts by reporting quarterly revenues of $US45.6 billion, up from $US43.6 billion ($A49m) year-on-year, while net income grew to $US10.22 billion from $US9.55 billion for the March quarter last year.   The company also announced it sold 43.7 million iPhones, up 17% from last year, with the product line still $US26 billion in revenues.   However, slightly more alarming for the company was the fact it saw a 16% year-on-year fall in iPad unit shipments to 16.35 million units, with revenues slumping 13% to $US7.6 billion.   Meanwhile, despite the sluggish performance of many of its rivals in the PC industry, Apple’s Mac product line reported a 5% increase in shipments to 4.1 million units, with revenues of $US5.5 billion.   The performance came against the backdrop of recent IDC figures showing the PC industry recorded a 4.4% year-on-year slump in shipments during the quarter, with rival Acer seeing its shipments fall 20.2% year-on-year.   Revenues from iTunes, software and services has grown 11% to $US4.5 billion, with the unit now coming close to matching revenues from the Mac.   Alongside the generally strong results, the company announced a seven-for-one stock split, with shareholders receiving six additional shares for each share they hold on June 2, with split-adjusted shares to begin trading on June 9.   The company also announced an increase in its share buyback scheme from $60 billion to $US90 billion, and an increase in its capital return program from $US100 billion to $US130 billion.   “We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” Apple chief financial officer Peter Oppenheimer said in a statement.   “That brings cumulative payments under our capital return program to $US66 billion.”   This article first appeared on SmartCompany.

Microsoft warns Windows XP users will be more vulnerable to viruses and malware after support ends

4:47AM | Tuesday, 8 April

Microsoft is warning small businesses still using Windows XP will be at increased risk of viruses and malware after the company stops providing security patches for the operating system later today.   Windows product manager Emmanuel Silanesu told SmartCompany the end of support means users will no longer receive bug patches, security updates or technical updates for the software.   “End of support means there will be no more security updates, non-security hotfixes, free or paid assisted support options or online technical content updates from Microsoft. This is in-line with our existing Support Lifecycle policy that has been in place since 2002.   “After April 8, 2014, Windows XP users will no longer receive new security updates, non-security hotfixes, free or paid assisted support options, or online technical content updates from Microsoft.   “Third parties may provide ongoing support, but it’s important to recognize that support will not address fixes and security patches in the core Windows kernel. Support for Office 2003 will also end at this time.”   According to Silanesu, there are a number of risks for businesses that continue to use XP beyond the cut-off date.   “Technology has changed a lot over the past 12 years. Many newer apps won’t run on Windows XP, new hardware may not support Windows XP and without critical Windows XP security updates, PCs may become vulnerable to harmful viruses, spyware, and other malicious software which can steal or damage your personal information and business data. Anti-virus software will also not be able to fully protect you once Windows XP itself is unsupported.”   For his part, Silanesu recommends businesses look at upgrading to PCs and other devices running Windows 8.1, which is the most recent version of its operating system.   “Small businesses are the lifeblood of the Australian economy and having the ability to not just be connected, but also productive is a part of modern business.   “By moving to the latest desktop and mobile Windows OS, customers will experience a fully connected and seamless experience across all devices. It is also costly to remain on Windows XP devices.   “In fact, according to a commissioned study by IDC, companies that chooses to stay on Windows XP will have to incur three times more cost per user as compared to migrating to a newer OS.”   This article first appeared on SmartCompany.

The eight biggest announcements from the 2014 Mobile World Congress

2:47AM | Friday, 28 February

This week in Barcelona, the GSMA – the peak global standards body for the mobile phone industry – is hosting its annual industry trade event, the Mobile World Congress.   The MWC is arguably the largest annual event in the telecommunications industry. It brings together carriers with mobile phone makers, equipment makers and app developers.   It’s where handset manufacturers make the big pitch to mobile carriers for the year ahead. A strong presentation can bring your products to the attention of mobile carriers the world over.   Perhaps more than the Consumer Electronics Show in January, the MWC is the big event where mobile phone makers unveil their new smartphones and other products for the year ahead.   This year’s event certainly hasn’t underwhelmed, with major announcements from some of the industry’s biggest players.   It’s time to take a look at eight of the biggest announcements from this year’s show:   1. Samsung Galaxy S5   Samsung is now easily the biggest handset maker in the industry. According to IDC, for the full year of 2013, it shipped a massive 313.9 million smartphones worldwide – that’s three out of every 10 smartphones shipped anywhere in the world.   Forget about Apple versus Samsung, it’s not even a race anymore at this point. Apple shipped 153.4 million units in 2013, meaning that for every handset Apple shipped, Samsung shipped more than two.   In fact, with the exception of the US and Japan, Apple is not even really competitive with Samsung anymore. That race was lost two years ago.   In addition to manufacturing smartphones, it also supplies itself with almost every component, from batteries and processors to cameras, memory chips and displays.   It is both the world’s second biggest chip builder, and the world’s second biggest ship builder.   So when Samsung unveils its main, flagship smartphone for the year, you better believe that everyone in the industry – from carriers to competitors – is watching very closely.   This year’s flagship, the Galaxy S5, was largely an incremental improvement on its predecessor, with the South Korean tech giant confirming speculation the new device is both dust-proof and waterproof.   Needless to say, both Telstra and Optus have already announced they’re carrying the new smartphone.   Aside from the Galaxy S5, Samsung shocked the industry when it snubbed Google for the latest version of its Galaxy Gear smartwatches. Instead of Android, the new devices will be powered by its own operating system, known as Tizen.   2. Microsoft’s Nokia X smartphones – powered by Android   For nearly two decades, Microsoft’s Windows operating system had battled an open source rival, known as Linux. While Linux has struggled to make inroads in the desktop PC market, it has emerged as the dominant operating system for servers.   Linux also forms the basis of Google Android, which competes head-to-head with Microsoft Windows Phone.   Meanwhile, in September last year, Microsoft bought the mobile assets of Nokia, along with a licence to use its patents, for $US7.2 billion.   In light of this, there was some scepticism when rumours first surfaced that Nokia was gearing up to release a series of smartphones powered by Android.   At MWC, Nokia confirmed the rumours by unveiling a new smartphone product line powered by Android called the Nokia X series. The new devices will come with Microsoft’s cloud-based apps and services pre-installed and won’t come with the Google Play app store.   Nonetheless, when Microsoft takes control of Nokia in April, it will be selling a consumer product based on Linux. Who would have thought it? 3. Facebook buys WhatsApp for $US16 billion   A week before the MWC, Facebook announced it is taking over mobile messaging service WhatsApp for an incredible sum – $US16 billion.   With both WhatsApp co-founder and chief executive Jan Koum and Facebook founder and chief executive Mark Zuckerberg delivering keynote speeches at MWC, the tech world was certainly going to pay attention.   During the keynote, Koum did not disappoint, announcing WhatsApp was launching free voice calls through its app during the second quarter, once the takeover by Facebook has been completed.   No doubt some of the mobile carriers were a little edgy about the prospect of Facebook launching an all-out assault on their lucrative voice call and text message businesses.   4. Mozilla unveils a $25 smartphone   This year’s Mobile World Congress marked the one year anniversary of the debut of Mozilla’s smartphone platform, Firefox OS.   For those unfamiliar with the platform, Mozilla is best known for its Firefox web browser. Last year, it announced it was creating a mobile operating system based on Firefox that would compete head-to-head with Google Android, Apple iOS, Windows Phone 8 and BlackBerry 10.   In Firefox OS, all apps basically work like interactive websites and are coded in web standards, including HTML5 and CSS. Since this is less demanding than running a “full” operating system with apps, the theory went that Firefox OS would perform well on low-end devices aimed for emerging markets.   In practice, some of the first Firefox OS smartphones, including the ZTE Open, have left a lot to be desired.   As I explained in Control Shift last week, Mozilla’s expansion drive has left it in a precarious position in the marketplace:   As if the situation weren’t already urgent enough already, Mozilla’s lucrative deal with Google expires in November of this year. In a sense, it’s fitting that [Mozilla founder Mitchell] Baker has taken up trapeze as a hobby, because Mozilla’s in the middle of a high-wire act. It might be that, over the coming months, one of Mozilla’s growing number of Firefox OS-driven side-projects gains traction in the market place. However, it could also backfire spectacularly, endangering its main source of revenue in the process.   Aside from the seven new smartphones on display, Mozilla also announced that a smartphone costing just $25 would hit the market this year.   Given that, up until the fourth quarter of last year, more than half of all mobile phones sold worldwide were still featurephones, mostly in emerging markets, the $25 phone might just be the big hit Mozilla’s looking for.   Story continues on page 2. Please click below. 5. Major updates for BlackBerry enterprise customers   BlackBerry chief executive John Chen’s bid to turn around the fortunes of the smartphone pioneer were filled out in a series of major product announcements at MWC.   Up until now, enterprises using BlackBerry Secure Work Spaces on BYOD (bring your own device) smartphones needed to use different versions of BlackBerry Enterprise Service (BES) depending on whether staff used newer BlackBerry 10/Android/iOS devices, or older BlackBerrys.   That has been cleared away with the release of BES 12, in the process clearing away many headaches for IT administrators. As an added bonus, it supports Windows Phone devices too.   The company also unveiled a new flagship phone with a full keyboard called the Q20 and an enterprise version of its BlackBerry Messenger service called eBBM Suite.   6. At least Sony’s new products are water-tight   Earlier this month, Sony announced it is selling its VAIO PC business to investment firm Japan Industrial Partners, spinning off its Bravia TV business into a separate subsidiary and slashing its global headcount by 5000 as part of a major restructure.   At the time, the Japanese tech giant announced it’s setting its sights on the smartphone, tablet and wearables markets for its future growth. Suffice to say, the company is hoping it delivered a hit with the products it unveiled at MWC.   The company unveiled a new flagship smartphone called the Xperia Z2, a 4G Android 4.4 KitKat smartphone powered by a 2.3 GHz quad-core Qualcomm processor. The company is proclaiming its 20.7-megapixel camera capable is the most ever used in a waterproof smartphone.   Which I’m sure is fantastic news for scuba-diving photographers.   The company also unveiled a 10.1-inch tablet called, imaginatively enough, the Z2 Tablet. The tablet is being marketed as the lightest ever used in a waterproof tablet.   Finally, the company unveiled a smart wristband called the SmartBand.   7. Opportunity knocks for LG?   The highlight for LG was an update of the KnockON security system called “Knock Code”, which uses a series of knocks rather than a password to secure a device. The new feature will appear on the LG G Pro 2 phablet, a new six-inch phablet set to go head-to-head with Samsung’s popular Galaxy Note devices.   The company also unveiled its “L Series 3” range of low- to mid-range smartphones at the show.   That said, most of LG’s big announcements came at the 2014 Consumer Electronics Show in Las Vegas in January, including its LG Lifeband Touch activity tracking bracelet, LG Heart Rate headphones, and webOS-powered smart TVs.   8. Tickets please!   With the rapid growth of mobile ticketing, it’s no surprise the world’s largest telecommunications show would embrace NFC tickets.   Telstra was one of a range of carriers to trial NFC badge technology for tickets to this year’s event.   The badges use information stored by a mobile carrier, including name and telephone number, to help verify an attendee’s identity. The validation process also includes a photo ID check.   This year’s show also features an NFC Experience demonstrating NFC-based mobile commerce systems for payment, retail, transport, mobile identity and ticketing/access.   In addition, there are 61 NFC-enabled Tap-n-Go Points providing event news, schedules, documents, presentations, videos and other information.   According to figures published by ABI research, in the next five years, 34 billion tickets to be sent to mobile devices,. In terms of technology used to authenticate tickets, the figures show 48% will rely on QR codes, near-field communications (NFC) will be used on 30%, while SMS or other technologies will be used on 22%.   If the forecast is accurate, it suggests using our smartphones to touch on for events, public transport or entry into secure areas could soon be a part of everyday life.

10 events and trends that shaped the tech industry in 2013

12:02AM | Friday, 6 December

The tech sector has always been hyper-competitive, and never has this been truer than in 2013.   For the likes of Twitter, Samsung and Google, the harvest of 2013 was bountiful.   However, from the perspective of Nokia, Microsoft, BlackBerry or the PC industry, it was a year to forget.   Here’s a look back at 10 of the big events and trends that shaped the tech sector in 2013.   1. One billion smartphones sold this year – and counting   The most important tech story of 2013 didn’t take place with a major product announcement or a Steve Jobs-style keynote speech.   Instead, it took place without fanfare at an ordinary mobile phone retailer somewhere deep in suburbia.   It was there that a consumer decided to purchase the one billionth smartphone to be sold during 2013.   To put that number in perspective, it is projected that 227.3 million tablets shipped worldwide during 2013, 158 million television sets, 180.9 million portable PCs and 134.4 million desktop PCs.   Meanwhile, figures from market analysts IDC show smartphones also outsold featurephones worldwide for the first time in history during the first quarter of 2013.   What this means is that while smartphones now account for more than half of the 418.6 million mobile phones shipped worldwide each quarter, there are still millions of old-fashioned featurephones being sold each year.   Especially in the low-end of the market and in emerging economies, that means there’s plenty of extra room for growth in the future – especially at the low-end of the market.   Make no mistake about it. The smartphone industry is big – far bigger than the PC or TV business. And it’s only going to get bigger in 2014.   2. Google Android and Samsung: The juggernaut rolls on The biggest winners from the spectacular, ongoing growth of the smartphone market have been Samsung and Google.   Last year, smartphones running Google Android outsold Apple. In 2013, that trend morphed into total industry domination.   For example, of the 261.1 million smartphones shipped worldwide during the third quarter of 2013, 211.6 million or over 80% ran Google’s Android operating system.   That compares to just 33.8 million iPhones, representing around 12.9% of the market, and a measly 3.6% for Windows Phone.   Samsung managed to ship 72.4 million smartphones during the second quarter of 2013 alone, representing around 30.4% of the market – more than double Apple’s sales during the same period.   Those device sales also mean increased component orders flowing through the various divisions of the South Korean tech conglomerate, which manufactures everything from semiconductors to batteries and smartphone displays.   The growing strength of the South Korean electronics behemoth is demonstrated by its advertising and marketing budget, which has been estimated at around $US14 billion worldwide.   To put that figure into perspective, as of 2011, North Korea’s entire national economy was estimated to stand at $US12.385 billion.   3. The PC industry bloodbath   While Google and Samsung have had a stellar year in 2013, the same certainly can’t be said for the PC industry.   The September quarter was the sixth consecutive quarter of falls, according to Gartner, with shipments falling to 80.2 million units for the quarter from 87.8 million a year earlier.   Figures released by IDC forecast PC shipments for the full year to fall 9.7% in 2013.   More alarmingly, it appears the emerging middle class in China, India and Brazil aren’t keen on buying computers, with total PC shipments in emerging markets expected to drop from 205.2 million to 185 million this year.   Australia and New Zealand led the trend, with a massive 21% year-on-year fall in shipments for first quarter in Australia, along with a more astounding 27% fall in New Zealand.   The implosion of the PC market was disastrous for a number of PC makers, including Dell, HP and Acer.   In August, HP announced a major shake-up of its senior management team after announcing a large 15% year-on-year drop in net earnings and a 22% drop in revenue from consumer devices during its quarterly results.   That same month, Dell reported a massive 72% year-on-year collapse in quarterly earnings, while a consortium including founder Michael Dell, Silver Lake Capital and Microsoft successfully fought off high-profile investor Carl Icahn’s bid for control of the company.   And at Acer, founder Stan Shih made a surprise return as interim chairman and president, following the resignation of former chief executive JT Wang and president Jim Wong after the company recorded a record third-quarter loss.   The resignations came after Acer announced its consolidated revenues for the third-quarter of 2013 fell 11.8% year-on-year to $US3.11 billion, resulting in an operating loss of $US86.6 million.   4. Surface falls flat   On top of falling PC sales and 3.6% Windows Phone market share, the news was dire for Microsoft on another front in 2013.   Late last year, Microsoft launched its Surface series of tablets as a first step towards making devices, with the company believed to have manufactured around six million units.   The release of the Surface instantly made Microsoft a direct competitor to many of its already struggling PC partners, straining relations in the process.   Fast forward to July of this year when Microsoft announced a massive $US900 million writedown on its inventory of unsold tablets. The writedown came less than a week after Microsoft announced a large price cut of $US150 for the struggling product line.   Adding insult to injury, Microsoft also revealed it has spent $US898 million advertising the tablets, while only generating $US853 million in sales.   According to many leading analysts, the company was believed to have sold just 1.7 million of the six million tablets it had built.   To put those numbers in perspective, Apple sells around 14.6 million iPads each quarter, while Samsung sells around 8.8 million.   5. Steve Ballmer resigns   During the 1990s, Microsoft was undeniably the 800-pound gorilla of the tech industry.   Then, in January 2000, founder Bill Gates stood aside as chief executive, in favour of Steve Ballmer, in order to focus on his philanthropic efforts.   Since then, the company has lost much of its former dynamism, and has failed to become the dominant player in a range of new technologies that have emerged since then, including search, tablets, smartphones or social media.   In August last year, Vanity Fair magazine journalist Kurt Eichenwald ran a feature exploring why Microsoft fell behind its rivals. A management technique called stack ranking was almost universally blamed.   “If you were on a team of 10 people, you walked in the first day knowing that, no matter how good everyone was, two people were going to get a great review, seven were going to get mediocre reviews, and one was going to get a terrible review,” a former software developer told Eichenwald. “It leads to employees focusing on competing with each other rather than competing with other companies.”   Add the low market share for Windows Phone, poor sales of the Surface and the PC industry bloodbath, and it became clear something had to give at Microsoft.   In July, the company announced a major management restructure, with the company’s strategy shifting to focus on “devices and services”.   Then, just one month later, Ballmer resigned as chief executive, with stack ranking dumped as a management technique soon after.   The Redmond, Washington-based tech giant is currently searching for his replacement.   Story continues on page 2. Please click below. 6. Nokia sold for a song   Soon after Ballmer’s resignation, the news was overshadowed by an even bigger story.   In September, Microsoft announced it was buying Nokia’s smartphone and devices businesses for $US7.2 billion, with the Finnish telecommunications company retaining its Nokia-Siemens services network equipment business and the Nokia brand name.   The deal came after Nokia announced its smartphone sales had slumped 27% year-on-year during the second quarter of 2013, with an overall loss of €115 million ($A190 million) for the quarter.   The sales plunge was led by the company’s Windows Phone-based Lumia smartphone unit, where shipments fell 27% from 10.2 million units during the second quarter of 2012 to just 7.4 million for the same quarter in 2013.   To put that number into perspective, it was a little over one-tenth the number of smartphones sold by Samsung during the same quarter.   It was an inglorious end to a company that absolutely dominated the mobile industry through the 1990s and 2000s. As recently as 2010, when Apple sold 47 million smartphones, Nokia managed to sell 104 million.   According to prominent industry analysts, such as former Nokia executive Tomi Ahonen, the fateful moment came in February 2011, when then chief executive Stephen Elop made the decision to switch its smartphones to the Windows Phone operating system.   Soon after, a leaked internal letter from Elop known as the “burning platform” memo likened the company’s situation in the mobile phone market to a person standing on a burning oil platform.   After the takeover was announced, Elop was named as one of the top contenders for the position of Microsoft chief executive.   7. BlackBerry’s failed comeback and takeover attempt   It wasn’t just Nokia that had a tough time in the smartphone market at the hands of Samsung and Google.   In January, BlackBerry launched its new, all-touch BlackBerry 10 smartphone operating system. The platform, originally scheduled for late 2011, had been delayed by a year, preventing the company launching a flagship phone in 2012.   The Australian launch for the first smartphone to run the new platform, the Z10, came in March at a gala event in Sydney hosted by Adam Spencer. A second device using a traditional BlackBerry keyboard, called the Q10, came soon after.   While the reviews were generally positive, the new devices failed to be the big comeback success the company’s then-chief executive, Thorsten Heins, had hoped for.   By August, the company formed a special five-member panel to examine takeover options after director and Canadian investment guru Prem Watsa quit the board.   In its September quarter results, the full carnage was laid bare. The Canadian smartphone maker reported just $US1.6 billion in revenues for the quarter, down 45% year-on-year and 49% quarter-on-quarter.   The company also revealed it sold just 3.7 million smartphones for the quarter – and less than half of those ran BlackBerry 10.   Total losses came in at $US965 million, including a massive $US934 million inventory writedown against unsold stock of the company’s Z10 smartphone.   The company announced more than 4500 staff layoffs, representing nearly 40% of its global workforce, while Heins bought a new private jet.   Meanwhile, the company’s rollout of its Messenger app for Android and iOS was frozen due to technical issues with its release.   In early November, with banks uncertain of the company’s long-term future, Watsa failed to raise the requisite $4.7 billion for a buyout, instead lending the company $US1 billion.   As part of the deal, Heins stood aside as chief executive, replaced by former Sybase chief executive John Chen, with Watsa rejoining the board.   Heins received a $US22 million golden parachute for his efforts, significantly less than the $US55.6 million he would have received had the sale gone through.   8. The Twitter IPO   Last year, Facebook’s disastrous IPO ended in tears – followed by lawsuits.   Thankfully, the outcome was not repeated when its social media rival, Twitter, listed on the New York Stock Exchange in November.   After opening at $US26 per share, the company’s share price surged 72.69% in its first trading session.   It closed at $US44.90 per share, before dropping slightly to $US44.44 in after-hours trading.   Making the result even more amazing was the state of its balance sheet.   While the tech giant has revenues of $US534.46 million and around 230 million users worldwide, it has never posted a profit.   Despite this, the company now has a market capitalisation north of $US20 billion, with chief executive Dick Costolo claiming the company’s long-term investment strategy has prevented it from chasing profits in the short term.   9. iOS7, iPhones and iPads   For Apple, 2013 was a solid if somewhat unspectacular year.   In June, the company released a redesigned version of its smartphone and mobile operating system, iOS7, alongside a new version of its Mac OS X desktop operating system, known as Mavericks.   It was the year that Apple finally unveiled a low-cost version of its iPhone, known as the iPhone 5c, alongside a new 64-bit flagship smartphone called the iPhone 5s, complete with a 64-bit processor and a fingerprint sensor.   Then, in October, the company unveiled a lighter version of its iPad, known as the iPad Air.   None of the products had the industry-shaking impact of the unveiling of the Macintosh, iPod, iPhone or iPad.   That said, with billions in profits each quarter, a solid second place in the smartphone market and the world’s biggest selling tablet, solid and unspectacular for Apple is better than most companies could dream of.   10. Xbox One and PlayStation 4 launch   Last, but certainly not least for gamers, 2013 marked the introduction of next generation games consoles from both Sony and Microsoft.   Coming a year after Nintendo launched its Wii U system, Sony announced one million first-day sales of its PlayStation 4 system, but the launch was marred by a number of angry consumers taking to social media to complain about non-functional systems.   Sony’s first-day sales were soon matched by the first-day sales of Microsoft’s new Xbox One system.   So how will the two new devices perform over the long term? We’ll have to wait until next year to find out!   This story first appeared on SmartCompany.

The big smartphone trends mobile app developers need to be aware of: Part Two

10:16AM | Tuesday, 8 October

Yesterday, your humble correspondent looked at four key trends in the smartphone industry that every mobile app developer should be aware of.   While the figures can be dry, the information is critical, whether you’re planning your start-up or looking for big numbers when you are strategising your future direction.   Likewise, coming up with a few hard numbers can be useful if you’re pitching for capital.   So, without further ado, here are four more essential trends emerging from the mobile sector:   1. Android dominates over Apple in most other major markets – except Japan   Okay, so Android is strong in the US and Australia, but what about the rest of the world?   In terms of market share the most competitive major market against Android is Japan. In Japan, Apple claims 47.4% of the market, compared to Android only a notch higher at 48.6%.   Across Europe, the story is very different, with Apple claiming 27.5% market share in the UK, compared to Android’s 56.3%. The situation is worse elsewhere in Europe, with Apple trailing 17.5% to 63.3% in France, 14.4% to 71.6% in Italy, 9.5% to 78.7% in Germany and claiming just 2.2% to 90.8% in Spain.   As for China, Android’s market share is now at 72.4%, compared to a respectable 20.8% for Apple. And there are a few very good reasons why you should pay attention to China when it comes to mobiles.   2. The world’s biggest smartphone market is China – and it’s huge!   Australia’s population stands somewhere around 23 million. The total population of the US is around 310 million.   This year, IDC anticipates China’s smartphone market will hit 360 million people. And that’s not including all the people still using older feature phones.   Next year, it is projected to hit around 450 million, including around 120 million users on 4G.   Now here’s an astounding statistic. The worldwide smartphone market reached 216.2 million units during the first quarter of 2013 according to IDC figures, while China’s shipments stood at 75.28 million. That means China accounted for around one-third (34.8%) of the worldwide market for smartphones.   And there’s still a lot more room for growth. The largest carrier in China – China Mobile – is estimated to have around 700 million mobile phone subscribers, including both smartphones and older phones.   Kinda makes Australia and New Zealand’s 2.6 million mobile phones per quarter look pathetic in comparison, doesn’t it?   3. Mobile apps are now a multi-billion dollar industry – and growing   If you thought China’s mobile market had some big numbers, take a look at the size of the worldwide app industry.   According to Gartner, last year there were 63 billion apps downloaded worldwide, including 57.3 billion free apps and 6.6 billion paid apps. Total revenue from apps hit a massive $US18 billion.   If you keep in mind that the total population of the Earth is estimated as being somewhere between 6 billion and 7 billion, a number like 6.6 billion paid app downloads starts sounding quite astounding – let alone 63 billion total downloads.   This year is on track to be even bigger. Worldwide, we’re on track for a total of 102 billion app downloads, with 92.8 billion free apps downloaded and 9.9 billion paid apps.   Gartner predicts those numbers are only going to get bigger.   In the year 2017, they anticipate a total of 268 billion apps will be downloaded. That’s right, two hundred and sixty-eight billion apps. Of those, 253 billion will be free and 14 billion will be paid.   4. Most Android users now use a recent version   One of the issues when it comes to developing for Android is how much you support legacy versions. Well, the answer is increasingly clear: Don’t bother!   According to Google, 48.6% of all devices running Android are now powered by JellyBean (that’s Android 4.1/4.2/4.3).   A further 20.6% run the previous version, 4.0 Ice Cream Sandwich, with 69.2% in total running a recent version of Android.   Meanwhile 0.1% of the Android user base is hanging on to 1.6 Donut, 2.1 Eclair or 3.0 Honeycomb. The only old versions to have significant user bases anymore are 2.2 Froyo with 2.2%, and 2.3 Gingerbread on 28.5%.   So sure, as far as Android fragmentation exists, much of it is over obsolete versions no-one uses anymore.   Time to cash in!   The global appetite for apps is huge – and growing. And contrary to popular myth, most of it isn’t in countries where English is the first language.   Now, are you going to let this opportunity pass you by? Or are you going to cash in?   Get it done – on mobile!   Click here to read part one.

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