August 25, 2010

Tipping Point

Filed under: gadgetry, technology, wireless — admin @ 3:32 pm

Nielsen’s announcement on August 2nd that (1) it estimated that smartphones had grabbed 25% of the US wireless market (if that includes prepaid, then about 70M subscribers); and (2) that Android had surpassed iOS in terms of new activations over the past 6 months was well-covered. Given that Android has been adopted by 5 US carriers (Verizon Wireless, AT&T, Sprint, T-Mobile and US Cellular, collectively representing over 90% of the market) and a multitude of handset makers, it was only a matter of time. That said, the announcement represented a tipping point of sorts. Nielsen’s chart on this is below.

As if to corroborate this, that same week, Google CEO Eric Schmidt announced that on a global basis, 200K Android handsets are being adopted daily, or 6M per month, or 18M per quarter.

When I bought the second Android available handset available in the US (HTC’s MyTouch 3G, from T-Mobile) back last fall so I could keep up with the joneses, finding an Android OS handset to play with beforehand was a bit of a challenge. (Thank you, Seamus.) Not so any more.

The icing on this particular cake came in the form of a call with my father, who casually dropped that he’d picked up a Samsung Galaxy from AT&T. The Galaxy falls in the “superphone” category, i.e., 1 GHz processor and up. Yes, that’s my Dad, rocking the Galaxy superphone running Android 2.1. That is a tipping point. He was migrating from Windows Mobile, also somewhat symbolic in itself. AT&T was apparently of little help during the data porting process, and I have to imagine that this issue will only grow going forward.

July 3, 2009

Sharp solar-powered cellphone

Filed under: Japan, gadgetry, wireless — admin @ 11:13 pm

Quick post on a solar powered phone from Sharp, available through KDDI AU and Softbank Mobile in Japan, meaning there are both CDMA and UMTS versions. (Coverage by Wireless Watch Japan of a review by Nikkei Tech-On.)

I got to see this phone (not use it, though) during a trip to Japan last month. I do wonder how much time a cellphone (at least one in urban Tokyo) spends directly in sunlight, unless you place it near a window. Nonetheless, snazzy; feel-good; takes advantage of Sharp’s capability to integrate components from its business units; and likely apt for overseas markets.

January 23, 2009

Our president and his Blackberry

Filed under: Media, gadgetry, marketing / branding, technology, telecom — admin @ 11:50 am

President Obama’s love for his Blackberry – which model is it, anyway? – has been well-documented, obama-cellphone.jpgand has inspired coverage of its in-kind marketing impact ($50M, according to the NYT), and a weekly column in the Economist on subjects the new President must face. Unlike President Bush, who forswore email during his two terms, President Obama has vowed to hold onto his, which, apparently will now be possible thanks to an encryption upgrade (link via AlleyInsider).

Congressmen and staff were early Blackberry adopters. I remember the tremendous freakout by staff, members and lobbyists alike during successive outages in Washington in 2005.

The immediacy of short-form, real-time messages will be a boon for researchers down the road, at such time that correspondence is made available. This also begs the question, do Presidents use emoticons? ObamaBlackberry.jpg

June 10, 2008

Style and substance

Filed under: gadgetry, technology, telecom — admin @ 4:41 pm

Two interesting data points on how wireless consumers seem willing to pay more for style, especially when it’s wedded with substance:

1) A survey conducted by J.D. Power and Associates of roughly 20,000 mobile phone owners in the US showed the average price paid for a handset has increased by $9 over the past six months to $101. Furthermore, the number of consumers who reported receiving their phone free-of-charge dropped to 33%, from 36% a year-ago. Not sure what the margin of error is for this study, but nonetheless, both of these belie the notion that US wireless customers will not pay for phones.

Both these changes are attributed to increased smartphone sales. Given that smartphones are essentially mini-computers with GPS functionality, the purchase is easy enough to rationalize by comparing with the reference price for a separate handheld PC or GPS navigation device (say, $99).

2) Rubicon Consulting, a consulting firm, asked iPhone owners “When you got your iPhone, what model of mobile phone, if any, did it replace?” Respondents answered as follows: (a) Windows Mobile phones (14%); (b) Blackberries (13%); (3) Palm (7%) devices; and, da-DAH, (d) Motorola RAZR (24%). Thus confirming the notion that Apple has eating Motorola’s lunch.

In its Q1-2008 earnings results, AT&T announced that it had 2.5M iPhone customers, paying, on a monthly basis, double AT&T’s regular ARPU of $50. Back of the envelope math would indicate that:
- 600,000 of those had been Motorola RAZR customers;
- 350,000 were Windows Mobile customers;
- 325,000 were Blackberry users;
- and 175,000 had switched from Palm handsets.

RIM shipments continue to grow, indicating that they, too, are eating somebody’s lunch, or that the overall pool of smartphone users is increasing.

While AT&T has indicated it will no longer split revenues with Apple with the 3G iPhone launch, the above ARPU numbers indicate that even with a haircut of up to 30% going to Apple, the iPhone has driven a net ARPU increase of $20-$25 per month, if not more. Assuming AT&T will eat a subsidy of around $200 with each 3G iPhone shipped, and further assuming a reasonable cost-of-service for iPhone customers (given that data usage from iPhones is over an order of magnitude higher than AT&T’s average, cost-of-service should be higher), the phones should pay for themselves in under a year.