Huawei hosted about 160 industry and financial analysts at its ninth annual analyst summit in Shenzhen, China in April 2012. The main takeaway for its consumer devices business was that consumer devices complete the end-to-end pitch for Huawei. Huawei showcased its growing capabilities across the wireless industry value chain. Most notably, Huawei made a foray into the smart devices domain with its own brand of smartphones and tablets. In 2011, Huawei shipped 20 million smartphones and 60 million mobile broadband devices like dongles. The smartphone market is already overcrowded with heavyweights such as Apple, Samsung, Nokia, and Motorola; thus, it might seem that Huawei may not be able to make a very profitable business from selling these devices. However, we believe that this move will bring indirect benefits to Huawei’s core Carrier Network division in the following two ways:
It spurs the uptake of smart mobile devices. Among all companies, Huawei is best suited to leverage manufacturing capabilities in its homeland, China, to mass-produce smart devices. Moreover, as it can manufacture processors in-house through its HiSilicon subsidiary, it can control and reduce the overall price of these devices. As price is a major buying criterion for consumers in regions like China, India, and the Southeast Asian countries, Huawei will be able to expedite the uptake of devices in these countries. Subsequently, the demand for data will increase and telecom operators in these countries will need to upgrade or roll out new technologies and networks (HSPA+, TD-LTE, FDD-LTE, dual-mode networks, etc.). This is where Huawei will benefit, as it will be able to position itself as an end-to-end supplier for telecom operators including hardware, professional and managed services, security solutions, servers, and storage.
In two recently published forecasts — Forrester Research Mobile Adoption Forecast, 2011 To 2016 (Western Europe) and Forrester Research Mobile Adoption And Sales Forecast, 2012 To 2017 (US) — we looked at mobile Internet usage across the US and 17 countries in Western Europe.* Tracking the evolution of mobile Internet usage allows us to understand changes in consumer behavior and to better understand such things as the rise of mobile commerce. We found that in 2011, less than one-third of mobile phone owners in Western Europe connected to the mobile Internet at least monthly; this equates to 100 million individuals. In the US, monthly mobile Internet penetration reached 114 million people, approaching half of handset owners. Even the UK, which is one of the leading proponents of mobile Internet usage in Europe, lagged the US, with less than 40% of mobile phone users connecting to the mobile Internet at least monthly.
European economic woes have almost certainly had an impact, but factors like higher smartphone penetration, competitive data plans, higher post-pay subscriber penetration, and the faster rollout of 4G networks and handsets in the US than in Western Europe help explain this difference. In 2011, more than 17 million US mobile phone users already had 4G compatible handsets compared with only 1.6 million in Western Europe.
The New York Times recently published an article based on a Forrester report (Mobile Is The New Face Of Engagement) about the uptake of smartphones worldwide in the years to come. And for 2011 it was estimated that just under 500 million smartphones were shipped. Knowing the drivers behind the growth of smartphones gives businesses confidence in mobile technology investment — even when uptake is currently still limited.
In the US today, Consumer Technographics® data shows that mobile usage is still far from mature in many industries. Take the financial industry as an example: 21% of US online adults with a mobile phone do any form of mobile banking versus 73% of US online adults who do online banking. When looking at the different generations, we see that younger generations, who are more likely to be early smartphone adopters, dominate in mobile banking.
Forget about the competition, we are playing catch-up with the customer psyche.
CI professionals need to follow Brown’s lead. A substitution of tablets and smartphones for cash registers promises both to improve customer experience and to transform face-to-face customer interactions into a stream of behavioral and contextual data. The benefits of digitizing human channels through consumer devices include:
Adding clickstream analysis to human interactions. As sales associates interact with customers, their devices can relay clickstream data back to the company’s data warehouse. For example, Pfizer’s tablet program allows it to track doctors’ content consumption patterns during sales presentations. Using interaction management, firms can test real-time content variations to optimize the sales process.
Expanding customer data integration options. By using the phones for mobile POS, employees will pull in customer identity. Firms can also add new methods for data capture – such as Bump-style, near-field communications – into its consumer and enterprise apps. As sales associates transfer a shopping list to the customer’s phone, the device can capture and associate customer identifiers and contextual information with the interaction.
Thanks to the phenomenal popularity of Apple’s iPhone and Android’s growing traction — more than 550,000 Android devices are activated each day — many product strategists tend to assume that smartphones are a mass-market phenomenon.
The reality is that in a global population with more than 5 billion subscriptions, smartphones are still niche. However, in the US and some European countries, smartphone penetration is racing past 25%; smartphones are going mainstream, albeit at a varying pace across the globe.
Consumer product strategists should anticipate the consequences of moving from a smartphone target audience of early adopters to one that is more mainstream.
When targeting the second wave of smartphone users, we believe strategists should:
Design specific mobile products by better understanding new smartphone owners. New segments of smartphone owners will emerge, with a much more diverse profile than the first wave of smartphone early adopters. One way to obtain more detailed information about these consumers is to use the basic connectivity of the smartphone to establish the beginnings of a digital customer relationship. The promise of ongoing product upgrades is one incentive that may convince these new customers to share their information, but free content such as an application is more likely to win their confidence.
Carefully monitor new smartphone owners’ usage. There is always a huge gap between the features available on a smartphone and the actual use of these features. It is critical to constantly analyze how smartphone users are using their devices; this will allow strategists to optimize the road maps not only for new devices but also for those products and services to be delivered to the second wave of smartphone users.
Do you remember the last trip that you took? In this season, chances are that it was only last week or last month. As much as we love to travel, ideally for leisure, we are often overwhelmed by all the planning and coordination that are involved in the process — flights, car rentals, lodging, just to begin with. And if you are truly a planner, you want to add the places to dine, events to attend, and attractions to stop by to the itinerary.
Luckily, we are in the technology-centric era. We have websites, software, and devices that help us make life easier. Two companies that I recently came across, TripIt and Traxo, are designed to take care of travelers’ concerns. Much like TripIt, Traxo aims to simplifying travelers' lives by aggregating all of their travel information in one place, but it does so in a more elegant auto-pull manner versus an email push one. Traxo users just need to link their travel accounts to Traxo via a one-time, upfront process, and then Traxo automatically detects all of their trips, miles, and points and intelligently combines them into a single travel dashboard. It also allows members to share experiences with friends and possibly discover where they might have an overlapping trip with another.
We talk to product strategists in a wide variety of industries. Regardless of the vertical industry of their companies, they tell us that the release of new, disruptive products -- like Apple's iPad -- changes their relationships with their customers. Oftentimes, nearly overnight.
Whether their product comes in the form of “bits” (content, like media, software, or games) or “atoms” (physical products, like shoes, consumer packaged goods, or hardware), consumer product strategists must navigate a world filled with a dizzying array of new devices (like mobile phones, tablet computers, connected TVs, game consoles, eBook readers, and of course PCs). We call this proliferation of devices the Splinternet, a world in which consumers access the digital world across a diverse and growing number of hardware and platforms. And product strategists have to react by developing new apps, by crafting digital product experiences, and by rethinking their product marketing.
Delivering digital products across the Splinternet isn’t easy: It requires understanding -- and acting upon -- an ever-changing landscape of consumer preferences and behaviors. It also requires reapportioning scarce resources -- for example, from web development to iPad or Android development. Yet product strategists who fail to contend with newly disruptive devices (like the iPad or Xbox Kinect) will find themselves in danger of being left behind -- no matter what industry they’re in.
We'd like to invite product strategists to take our super-quick, two-minute survey to help us better understand how you are reacting to disruptions caused by the Splinternet:
Okay, so Verizon Wireless (VZW) now will offer iPhone 4s to its customers on its 3G network. (The official launch date is February 10, 2011). What does this mean for content & collaboration professionals? A lot, as it turns out, as yet another brick is laid in the post-PC future.
Forrester customers can read the new report by my colleague Charles Golvin analyzing the impact on the industry and the consumer market. Here are some thoughts on what this deal means for the enterprise and for content and collaboration professionals. iPhone-on-VZW means:
You have yet one more reason to support iPhones. Mobile service provider choice is important on smartphones and tablets, both to provide good network coverage to employees and also to keep competition high hence prices low. AT&T Mobility’s lock on iPhone in the US was one reason some firms have been reluctant to support iPhone. With iPhone-on-VZW (not to mention the aggressive $30/month introductory pricing for an unlimited data plan), that barrier is gone.
Yet more employees will bring their personal iPhones to work and ask for your help. Verizon Wireless has been driving the consumerization of Android devices; it will now also spend some money promoting and selling iPhone-on-VZW. This will only increase the “osmotic pressure” of employees aka consumers bringing their personal devices to work. And they will want more than just email on their personal smartphones; they will also ask for SharePoint and the employee portal and and and . . .
Apps dominate the mobile conversation these days for a lot of well-demonstrated reasons, but with much less fanfare, the mobile Internet — especially the frequency of its users — has taken off. I don’t mean just that ‘mobile Web use has grown’ or it’s continuing to grow at steady pace. No. The rate of growth has jumped dramatically.
In the six months between year-end 2008 and mid-2009, daily use of the mobile Internet grew from 7% to 10% for all mobile phone users. Once you narrow it down and look at smartphone owners, the growth is even more startling, as you can see in this report. Better handsets, better browsers, and faster networks have remade the mobile Internet from a novelty to a growing, and growing quickly, part of mobile users’ daily lives.
One of the significant shifts in consumer mobile behavior identifed by Forrester in the past two years has been the increase in use of the Internet on mobile phones. The growth has been staggering -- consumers don't typically shift their behavior this quickly. One of the reasons has been growth in the number of smartphones we own and use. Great user experiences delivered by great user interfaces on phones and fast networks have been part of that smartphone upgrade as well. The AdMob data shows that smartphones generate 46% of its ad requests.
Download the report for a deep dive. Look for the growth in the number of countries where individuals are using their cell phones to access the Internet. We've also seen a new category emerge - "Mobile Internet Devices." See its breakdown of iPad ad requests. The US generates 58%, with Japan second at 5%.