Sony Should Have Been A Digital Contender

James McQuivey

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News out today confirms that Sony has indeed sold off its Vaio PC arm, ending 17 years in the personal computer business. And that CEO Kazuo Hirai has also decided to separate the TV division into a standalone unit in order to better heal it. Although he insists for now that Sony has no plans to sell that division, it would be foolish of the company not to consider any good offers. If there are any.

Because really, who would want that business? It has lost nearly $8 billion in the last 10 years and has been rapidly losing share to Samsung and LG and is about to get attacked by Chinese TV makers eager to have more influence in the US and other Western markets. I saw a very impressive offering from Hisense, TCL, and Haier at this year’s CES and expect them to make inroads against the more expensive panels from Sony, Panasonic, and Sharp, all of which have struggled to keep up.

Did this have to be Sony’s fate? Absolutely not.

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CES 2014 Roundup In Three Bullets

James McQuivey

The madness that is the Consumer Electronics Show (CES) has finally subsided, people are safely home (some never arrived thanks to cancelled flights), and we’ve had sufficient time to read the CES stars and foretell what it means for 2014 and beyond. Condensing this show down to so few points requires omitting some things, even some fun things like Michael Bay’s meltdown and T-Mobile CEO John Legere’s attention-grabbing tactics, but it’s my job to say what it means. So here I go, predicting what will happen in 2014 with three (admittedly long) bullets:

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Samsung Shakes Up North American Retail. Microsoft Should Take Note.

JP Gownder

Infrastructure & Operations (I&O) professionals, in the age of Bring-Your-Own (BYO) technology, are keeping closer tabs on the comings and goings of the consumer market. Most of the devices they find their companies’ employees using come from consumer retail, whether from physical retail locations like the Apple Store or Best Buy, or online venues like Amazon or Dell.com.

Samsung announced yesterday that it will be opening “Samsung Experience Shops -- based on a store-within-a-store concept -- in 1,400+ Best Buy locations in the US in coming weeks and months. By the second half of the year, Samsung will possess a significant retail presence tailored to its own devices and staffed with sales associates with greater knowledge of its products. CNET reports: “The shops in large-format Best Buy stores will include blue-shirted consultants who are employed and trained by Samsung, as well as Best Buy staffers who receive special instruction.”

Apple, of course, has enjoyed incredible success with its Apple Stores since they opened in North America in 2001. The Apple Store has been a powerful pillar of Apple’s overall consumer strategy because of:

  • The quality and effectiveness of its sales associates. Apple has been able to attract, train, and retain high quality staff for its stores. In an era when cost-cutting affects retail experiences across all categories, Apple’s associates create a high-quality customer experience for Apple's customers and prospects.
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CeBIT 2013: Enabling Digital Disruptors

James McQuivey

In years past, technology trade shows like CeBIT or its cousin in the US, CES, have been a place for the introduction of new devices. Whether it was Nokia introducing its comeback phone or Sony pushing 3D displays, computing technology and consumer electronics companies have used these shows to introduce the next big thing.

But what happens when the next big thing isn’t actually a thing but is, instead, the arrival of platforms that enable a more effective marketplace? That’s the shift that’s occurring in the world, thanks to digital disruption. Under digital disruption, companies innovate by using cheap (sometimes free) digital tools and exploiting digital platforms to change products as low-tech as the toothbrush or waterless hand soap. They also use those digital tools to alter the way they make and deliver their products and services, including things as analog as fingernail polish, something I heard about today and will blog more on in coming weeks. As a result, every company is now digital, no matter how physical their processes and outputs.

Digital disruption means that the technology companies that provide these digital tools and platforms have more opportunity than ever. Their devices and systems will be necessary in the lives of every consumer as well as every enterprise. Witness the amazing growth of Amazon Web Services as it enables businesses across the gamut with its cheap access to storage and delivery tools.

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The Data Digest: Consumers Show Interest In Tablet PCs

Reineke Reitsma

The iPad has been a huge hit with consumers: Only a couple of months after the launch, Forrester’s Technographics data shows that 1.3%, or 2.5 million, US online consumers report that they already own an Apple iPad, and an additional 3.8% (7.4 million) say they intend to buy one. The success of the Apple iPad has created a halo around tablets in general: About 14%, or 27 million, US online consumers say they intend to buy some kind of tablet in the next 12 months — more than any other type of device we’ve asked about.

A recent Forrester report “US Tablet Buyers Are Multi-PC Consumers” shows that it’s not all good news for PC manufacturers. Because, although consumers are getting excited about tablets in general, they're confused about what they actually are. This confusion probably means that not everybody that shows an interest will actually buy a tablet, but we do think it shows that there's interest in the category that goes beyond the iPad. PC manufacturers like Dell, HP, Samsung, Sony, and Toshiba need to offer consumers a bit of guidance on what a tablet is, what it can do, and how it complements the extensive range of devices they already own.