Android has a collective evolution

According to Andy Rubin of Google, there are 850,000 activations of Android devices, whether mobile or tablets a day. Rubin explains the motivations behind the acquisition of Motorola: "The advantage of having a firm that makes it able to dial to where we think the future will, but it won't make anything exclusive that it may damage the rest... We believe in an open ecosystem."

As it happens, Motorola released the Android 3.0 Xoom tablet. Samsung offers version 4.0, which unifies tablets and phones. "Without balance you can not make an ecosystem. " Within this logic fits the fact that many manufacturers such as Motorola's own Motoblur, Samsung or HTC Sense Hub, provide their own equipment and adaptable interface. "I know it's controversial, some may prefer the pure system, as it comes, it also helps handled who are not familiar or want to customize. Anything to give consumers more choices seems right. "

Rubin has revealed that in 2011 12 million tablets with Google software were sold, excluding the Amazon Kindle Fire. They just doubled those sold in 2010.

First came Google Music, Google Books and later, YouTube was acquired... Just after they released Android. Now they need to combine both worlds ... "We will add more content, but for now we can not advertise. We have to improve to do business. "

Android still has some issues to solve: such as hiw you can't have good Facebook application in tablets? All board members have agreed that what is seen in the 10 inch version does not seem very consistent with the social network. "We will try to mark a path as the application of Gmail or YouTube, which detects the device and adapts, but it is a question for us, but for Facebook it does offer a version for iPhone and one for iPad" . A few hours later the head of Facebook's Technology has announced its commitment to a web-based, open mobile HTML5.

Rubin says high-end phones today will become the minimum within a window of 18 months. "The important thing is to be brave enough to set trends." When he arrived at Google, the firms invested in Android because, he says, Google knew that their business model, with free services and advertising revenue, was the only one who could succeed with their vision completely. It is unfair to think that all innovation comes from a company. The evolution is collective. "

Neither ruled out at some point a launch of a Google e-reader, but it does not seem too logical: "There is already an application in our Kindle Store."

The future, according to Rubin, is the era postPC. Once you have set in tablets and phones the next frontier is in the home, when you come home and leave the keys, mobile and work. "I feel that if we put Android at home, this will not work. We must be imaginative to join more traveling companions. If not, others will come up with another ecosystem. It is an industry that we want to lead by giving intelligence to home," he argues. It fits with the line of home automation smart labels, just a day before Sony had introduced its new handsets.

Source: El Pais

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis

New article on Seeking Alpha: The battle of smartphones manufacturers

My new article "The battle of smartphones manufacturers" is now available on Seeking Alpha.

http://seekingalpha.com/article/309935-the-battle-of-smart-phones-manufacturers

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis

Apple has 90% of the mobile revenues in applications

Google's mobile operating system, Android, has become the top platform in some countries, even eclipsing Apple's iOS. And this makes sense—after all, their are many, many more Android devices to choose from, including more budget options. But when it comes down to developers' earnings, there's no competition.

However, new data released by Piper Jaffray revealed that the Android platform has generated just 7% of the revenue that Apple's iOS has—a meagre $330 million compared to a staggering $4.9 billion. While an impressive 14% of iOS apps downloaded are paid, only 1% of downloaded Android apps are. I guess that's what happens when a platform's core demographic are those with tighter budgets. Apple boasts as much as 90% of the mobile marketshare in terms of app revenue.

Source: http://www.techvibes.com/blog/apple-owns-90-of-mobile-revenue-marketshare-ios-developers-make-14x-as-much-as-android-developers-2011-11-21

Louis Rhéaume
infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis

The most popular music apps in the USA

here are the most popular music apps for android and iphone.

Source: http://gigaom.com/2011/11/11/tunein-radio-rises-to-the-top-among-streaming-music-apps/

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter:@InfocomAnalysis

The fastest growing communications innovations: What is next?

The technology adoption of some new communications innovations have increased exponentially in recent years.  The following graph shows that while it took around 75 years to the fixed line to reach 50 million customers, it took only 12 years to the mobile phone, 5 years to the iPod,  4 years to the e-mail and only 3 years to the Skype’s VoIP software.  It can be explained by the fact that several communications networks are already in place and new innovations can leverage existing infrastructure.  Another reason is the fact that communications consumers are more “technology educated” than before.  The fastest growing tech firm at the convergence of social networks, and mobile commerce is Groupon, which has reached 2 billion in revenue in two years of existence and the key mark of 50 million subscribers.

Source: debitel

A recent report by In-Stat indicates that smartphones are becoming the "standard" in mobile devices. Particularly the demand for advanced mobile handsets that contain significant processing power, robust memory, large screens and open operating systems will drive the sales of mobile manufacturers. 

Their forecast is that unit shipments of smartphones will be nearly 850 million by 2015. Among the critical factors for the smartphone success, there are powerful browsers, a wide variety of apps, easy to navigate user interface, and a good keyboard or touchscreen. Furthermore, other intangible attributes, such as being "fashion object" and that "your friends or relatives have one" are also important. 

In-Stat also predicts that the majority of U.S. handset shipments will be smartphones by 2012 while Android would maintain its momentum and will continue to be the leading OS.  In-Stat suggests that by 2015, over two-thirds of smartphones will still be WCDMA-based, with LTE smartphones representing only a small minority of annual handset shipments, even in four years.

What other communications devices will reach the fastest 50 million users?

Tablets represent a challenger with the penetration in the business sector. According to Gartner, nearly 20 million tablets have been sold in 2010, and around 54.8 million will be in 2011 and it should reach 208 million in 2014. In addition to Apple iPads, tablets include those based on Android, RIM, WebOS and other such operating systems. It appears that Apple iPads and other tablets are cannibalizing e-readers, gaming devices, and mini-notebooks.

 “Mini notebooks will suffer from the strongest cannibalization threat as media tablet average selling prices drop below $300 over the next 2 years,” says Carolina Milanesi, research vice president at Gartner. Gartner suggests that the North American market will account for 61% of the total market this year but that the percentage will fall to 43% in 2014 as tablets become more widely available across the world. More than half of tablets sold in 2010 supported WiFi.

It appears that Android tablets are gaining interesting market shares over iPad in the last quarter.  They gained 22% of the Q4-2010 market.  The iPad had 95% and decreased to 75%.   Galaxy, Samsung’s tablet with Android is the main contender for the iPad. Strategy Analytics forecast that Apple’s iPad will decrease below 50% market share in the next 2 years. 

Growth opportunities

·         Firms which should heavily benefits from the growth of tablets are:

o   online publishers (the ones who will bet on e-Books growth and sell directly to the public: i.e. Amazon)

o   devices manufacturers (Apple, Samsung, RIM)

o   technology suppliers (Tech SMEs, Publishing Technology plc [PTO.L])

Google just bought eBook Technologies 3 weeks ago.  It provides an end-to-end electronic book platform offering a full range of eBook products and services. It includes electronic reading devices, an online bookstore where readers can buy eBooks, an online "bookshelf" that lets users store their purchased content, and software that converts content to the company's eBook format.

·         Some experts suggest that new entrants in the tablet market should appear such as Amazon. If it is the case, Amazon would enjoy growth again as an online publisher and manufacturer, which it is already doing with the Kindle.

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com

What is the potential of Research in Motion (RIM.TO)?

In mobile platforms all the hype actually is on Apple and Android (Google).  Their market shares are rising quickly in the US.   For the CEO of Apple Steve Jobs, ““We’ve now past RIM, and I don’t see them catching up to us in the near future.”

Balsillie co-CEO of RIM answered: ” The implication being that RIM practically invented the smartphone category and is not going anywhere.”

RIM has a different attitude toward web apps than Apple. There may be 300,000 apps for the iPhone and iPad, but according to RIM CEO, the only app you really need is the browser. “You don’t need an app for the Web,” he says, and that is equally true for the mobile Web. Blackberry is betting heavily on the Web, similarly to Google.

Positive aspects:

-New RIM mobile ad network :  good potential.

-New potential of Playbook blackberry tablet; cheaper than the iPad, but 3 to 4 times faster than the iPad. It will be launch at the beginning of 2011 and support Flash applications.

-Potential in new emerging markets: RIM smartphones are better value with BB messenger : free real-time SMS and lower cost of smartphone.  In Latin America and several part of the globe, the majority of users are prepaid users who can’t benefit from subsidies on the smartphone or from  long-term contract.

-Mary Meeker: Smartphones Will Surpass PC Shipments In Two Years.

Negative aspects:

-RIM position on development of apps.   For co-CEO Balsillie, people prefers mobile web to native apps.  When the difference is un-significant it is true, but unfortunately it is not always the case.  One big example: www.youtube.com on mobile doesn’t play all your videos.  The free app plays videos of the day but you can’t search that you want in the library.  The $2.99 native app let you play the videos of your choice.

-RIM is losing market share mainly in the US over Apple and Android.   

Outlook

Even with global market share shrinking slightly the stock is cheap, so the short term potential is good.  Will RIM be a major brand and mobile platform in 10 years? I’m not so sure in the US for the consumers sector but it will remain an important player in the business sector.  However, the company has competitive advantages in the emerging markets. It offers a good ratio quality/price for these customers.

With a P/E ratio of 11.1, the stock seems cheap. The global smartphone market is growing quickly.

Apple P/E ratio is 19.91, less if you consider the $51 billion in cash and has the momentum, but the question is can it maintain its higher valuation in the medium and long term?  I remember my economist teacher who said 14 years ago that in the tech sector, you can’t hold many tech stocks for the long term.  You have to trade more often.  2 stock crashs later he had a good point.

Apple's mobile ecosystems growth are remarkable (you can see the second graph), but the valuation of the firm is actually taken that into account. RIM valuation is not taking completely into account all of these growth factors.

Louis Rhéaume

Louis@infocomintelligence.com

Infocom Intelligence

Does Research in Motion (RIM) is still a contender in wireless?

It appears that RIM web usage is growing, which is not the case of Apple's iPhone OS web usage. In fact, Blackberry users have doubled their Web presence over the course of the past year.

The data is from Statcounter:

Although the chart clearly shows Android's rise in terms of Web usage, it surprisingly shows Blackberry's increased market share, too.

It appears that RIM should not be discarded as as serious contender in the corporate and consumer sector. However, increased Web usage only shows that RIM users are doing more mobile Web surfing, not necessarily that the platform as a whole is making a comeback, but the new Blackberry OS (version 6), available now on the Blackberry Torch, offers a much-improved Web browser based on the open-source WebKit technology, the same technology that's used on the iPhone and on Android. Thus, we can expect more Blackberry devices in the future, and Blackberry users' Web usage will certainly grow even more.

For developers targeting Blackberry users with mobile websites or services as opposed to native applications, this increase in browsing are good news. But if you're looking to get the most return on investment for your native applications, you still need to look at the raw numbers of native application users on the top mobile platforms.  Android has the biggest momentum and most attractive ROI per app. 

Louis Rhéaume

Infocom Intelligence

louis@infocomintelligence.com

10 great Android applications

Here are 10 great Android applications:

Android is the mobile platform of Google. It reached its 100,000-app milestone last week. It is about two-thirds less than the number available in Apple's App Store, but Androis ecosystem is the fastest growing mobile OS. More than 200,000 Android phones are activated daily. iPhone activates more than 275,000 per day. 


1-Intuit.  I worked for Intuit in 2000, in order to test a real time portfolio management stock market software.  It never came in the market.  But Intuit is still a real incumbent in finance software.  Intuit acquired Mint, which allows users to manage each aspect of their finances from their smartphone, is a big part of that strategy. Mint users can download their bank, credit card and other account information at Mint.com (the site uses bank-level encryption), the app displays expenses in categories like restaurants, groceries, and health and fitness. You can also set spending goals and receive notifications if you're over-budget for the month. The only functions missing on the app are the ability to display data in pie charts and custom graphs and suggestions about how to save your money, which are all offered on Mint's website. 


2-Amazon Kindle Reader 
It is the Android version of Amazon's Kindle Reader is the best thing to happen to Android users who often find themselves alone with just their phone. While the quality of an Android Kindle reading experience depends on the size of one's screen and one's ability to find a shaded area -- it's too hard to make out the words in bright sunlight -- reading one of the 725,000 books on Android is not much different from reading on the Kindle itself. Users can bookmark, add notes and highlight passages and look words up via Dictionary.com.  The app also allows books bought on Amazon to be shared between phone and Kindle at no extra cost.


3-Yelp
Yelp integrates mapping technology that directs users to locations as they walk -- in a pop-up, interactive Google map. The Monacle feature allows lost users to see a red dot on their screen as they hold their phone up on the street, helping guide them to the exact location of where they want to go. One problem: while users can draft restaurant/shop reviews from within the app, they can only publish the write-ups by going to Yelp's website.


4-Slacker Radio 
Pandora is a leader, but Slacker Radio offers a greater number of songs and playlists searched and compiled by genre artists. The resulting playlists seems to be a little more relevant to our tastes than what we heard via Pandora. Despite the annoying audio ads that come with the free version of the app, the Slacker experience -- especially the paid versions, which are either $4 a month or $47.88 a year - exemplifies what we've come to expect from Internet radio: the ability to customize our own "radio station," more allowance of song skips and the option to cache our stations, so we're able to listen to songs even when in an area without wireless accessibility.


5- Bump
Bump's technology, available for iPhone and Android users, allows folks to exchange contacts, pictures and calendar events between two phones by tapping them together. Users can also connect on Facebook, Twitter and LinkedIn using the app.  Additionally, Bump, downloaded so far by more than 10 million users, can be used for mobile payments, enabling PayPal app users to transfer money by bumping phones.


6-Advanced Task Killer
Owners of Androids like the Droid X and the HTC Incredible might not realize that Android apps often run in the background, draining the battery and slowing down functionality. Advanced Task Killer shuts down these programs (with a user's permission, via a checklist like the one above), but keeps the essential services running to free up memory.


7-Astrid
Astrid provides users with a customized to-do list. Users start by adding simple tasks - a wake-up alarm or "buy milk," for example - then follow up with tags that help with prioritization. Astrid tracks the time spent on a task; we like the encouraging, youthful language that pops up with the reminders, like: "You said you would do it: Edit Android App Story."  It also syncs with Google Tasks.


8-Barcode Scanner 
It is targeted toward avid comparison shoppers, Barcode Scanner lets Android users scan a product's barcode with the camera phone; the app then pulls up prices, reviews and shipping labels associated with the item. Users can discover if a book found at a Barnes & Noble store is cheaper online or at a competitor's store or website. The applications, powered by Google, can also scan QR codes - those big, square-shaped barcodes often placed on companies' websites that contain URLs, addresses and contact information.


9-Dial Zero
Dial Zero provides a directory of toll-free customer service numbers for over 600 companies, allowing users to bypass the automated recordings to more quickly reach a person.


10-Seesmic 
Seesmic allows users to manage Facebook and multiple Twitter accounts and updates in one easy-to-use interface. Founded by French blog guru Loic Le Meur, this social media-managing space is crowded with similar apps, but Seesmic seems to work a little more seamlessly and also lets users record and upload videos to YouTube, share photos on yFrog or TwitPic and shorten URLs.

Louis Rhéaume
Infocom intelligence
louis@infocomintelligence.com

Who is still the leader in smartphones?

Blackberry is still the most popular operating system (OS) platform for smartphones around the world with a presence in around 70% of firms in North America and Europe in Q1 2010. However, among consumers and business smartphones users, RIM is also the leader but is challenged by the growth of Android of Google.  Even though Apple experienced fast growth with its iPhone, they lost a bit of market share between May and August this year.  Finally, Microsoft just announced the launch of Windows phone 7 which resemble Android http://news.yahoo.com/s/ap/20101011/ap_on_hi_te/us_tec_microsoft_phones

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com