iPhone Up, iPad Down: What Apple's Device Mix Says About Mobile Devices

JP Gownder

Apple's reported earnings revealed a strong product mix contrast: iPhone sales increased 17% in units and 14% in revenues, while iPad sales decreased 16% in units and 13% in revenues. What accounts for this contrast? Is the iPad's growth trajectory broken?

Simply put, the iPhone's addressable market has only continued to increase with Apple's continued international expansion. Only recently, for example, has Apple broken out in Japan (still the world's third-largest economy); only a few months after releasing the 5S and 5C across all three of Japan's largest carriers, iPhone models made up 9 of the top 10 phones sold. And for iPhone, unlike iPad, the route to sales comes through carrier relationships -- of which Apple has landed more recently.

By contrast, the iPad's year-over-year results lagged because:

  • Price competition in tablets has been fierce. With Android tablets under $200 now commonplace -- including Samsung's Galaxy Tab 3 and Amazon Kindle Fire HDX -- Apple's premium pricing is catching up to it. 
  • Replacement rates are lower than expected. Why are prices catching up to iPad now? Because replacement rates haven't been as quick as with iPhone. The pace at which people purchase smartphones is quicker than that of iPads, even among the Apple faithful. This means that Apple is seeking an ever expanding market -- people without tablets. For later adopters, who didn't see the big deal early on, price matters more than for earlier adopters.
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What Can We Expect At Mobile World Congress 2014?

Thomas Husson

Last year, when attending my tenth Congress in a row, I wrote that MWC 2013 would be more global and more disruptive than ever before. I believe the same will be true this year, with 2014 bringing a very important milestone in the shift to mobile: an install base of more than 2 billion smartphones globally. Mobile is transforming every industry by offering global reach and the ability to offer contextual services. That’s why we'll see many more marketers, agencies, business executives, and strategists attend the traditional telecom show.

Gone are the days when MWC was about operators' supremacy. As my colleague Dan Bieler summed it up in this blog post, telcos are increasingly being backed into a corner. I still remember this quote from Arun Sarin, the former CEO of Vodafone, in the Financial Times in November 2007: “Just the simple fact we have the customer and billing relationship is a hugely powerful thing that nobody can take away from us.” Really? Well, in the meantime, Apple and Google have created two powerful mobile platforms that have disrupted entire industries and enabled new entrants to connect directly to customers.

From a marketing and strategy perspective, I'd categorize the likely announcements in three main areas:

1)    The Asian Device Spec Fashion Week: Getting Lost In Device Translation

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Forrester Releases The Annual State of Consumers And Technology 2013, US Report

Gina Fleming

We just published our annual report on The State Of Consumers And Technology: Benchmark 2013, US. This data-rich report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for consumers’ level of technology adoption, usage and attitudes. Our annual benchmark report is based on Forrester's Technographics® online benchmark survey that we've been fielding since 1998. The report covers a wide range of topics, such as online activities, social media activities, retail behaviors and preferences, and device usage—for  ‘traditional’ technologies like TVs and laptops—as well as more emerging technologies like smartphones, tablets and wearables.

We analyze our findings through a generational lens, including Gen Z, Gen Y, Gen X, Younger Boomers, Older Boomers, and the Golden Generation. While most Americans are already online, we are seeing major strides in mobile Internet access. In 2013, all generations are connected—81% of the US adult population goes online. But there are still generational differences in smartphone usage: Seven of ten Gen Zers and Gen Yers use a smartphone, but only 18% of the Golden Generation do.

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India And China Will Lead Asia Pacific Enterprise Mobile Software Spending In 2014

Katyayan Gupta

Consumer mobility in India and China is flowing into enterprises. Recent Forrester survey data shows that nearly three in five IT execs and technology decision-makers in these countries — 58% in India and 57% in China — plan to increase their spending on mobile software (including applications and middleware) in 2014.

India has leapfrogged Australia/New Zealand and now leads the Asia Pacific region in terms of expected mobile software spending growth. China has made the biggest move over the past year, jumping from eighth place to second.

We believe that the high growth in mobile software spending in India and China is primarily due to:

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Driving Technologies That Will Delight Customers

JP Gownder

Businesses that thrive and grow in the age of the customer are obsessed with customer delight: the most successful companies are reinventing themselves to systematically understand and serve increasingly powerful customers. This business reality creates new imperatives for everyone inside an organization, and infrastructure & operations (I&O) professionals are not immune. So the question becomes, how does I&O participate in the transformation of the enterprise toward customer obsession?

The answer to this question is important, because technology's role in business is rapidly changing -- from a world in which Information Technology (IT) enabled a company to function more efficiently, to a world of Business Technology (BT), which we define as technology, systems, and processes to win, serve, and retain customers. Yet customer-facing technologies aren't always (or even often) the traditional role of I&O. So how can I&O participate?

How about starting with a simple dictum? Spend more time on technologies that will inspire and delight customers, either directly or indirectly. To start this journey, I'd like you to watch this short video of how a digital billboard has gone viral:

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New iPad Air And iPad Mini Will Maintain Apple's Premium Positioning In The Increasingly Competitive Tablet Market

Thomas Husson

As it did for the iPhone 5S and 5C, Apple has tweaked its product portfolio with two new products to maintain premium positioning in an increasingly competitive tablet market. Both the iPad mini 2 (starting at $399) with Retina display and the iPad Air (starting at $499), which is thinner (43% thinner than the iPad 4), lighter, and faster (with a super-fast A7 chip) are great additions to the iPad product portfolio and come with new colors and covers. As always with Apple, expectations on systematic breakthrough hardware innovations are irrational. Apple is good at inventing new products (e.g., iPod, iPhone, or iPad) and at maximizing profitability of its product range over time through software innovations and clever marketing. Yes, at some point, the company will need to disrupt a new market once again, but today’s announcement is really about making sure it maintains the premium brand experience for the holiday season when competition is heating up — not just for tablets but also for the amazing new line of Mac products.

Competition is heating up

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Address Three Key Management Concerns To Win Internal Support For BYOT Initiatives

Katyayan Gupta

Information workers in India are increasingly using their personal devices, applications, and web services to accomplish both personal and work-related activities. Results from Forrester’s Forrsights Workforce Employee Survey, Q4 2012 indicate that at least 85% of employees use phone/tablet applications and web-based services for both purposes which is putting corporate information security under serious threat.

My interactions with numerous infrastructure and operations (I&O) professionals from large enterprises in India over the past six months have revealed that there is a high degree of awareness of the need to develop a bring-your-own-technology (BYOT) policy. However, actual implementations aren’t yet common, as I&O professionals are unable to address management’s three key concerns. These are, in order of priority:

  1. How can we ensure that information on employee-owned hardware and software is secure?
  2. What will be the return on investment (ROI)?
  3. What is the current business need for BYOT?
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Highlights and Thoughts From Finovate Fall 2013

Peter Wannemacher

[note: this was written live last week while I was attending Finovate]

Greetings from the Big Apple! I’m here attending the fancy schmancy Finovate Fall 2013 conference featuring tech solutions and innovations from – and for – the financial services industry. Here are some of the offerings and presentations that stood out for me, in the order they were presented at Finovate:

  • Kofax offers process automation software for lenders, but the big takeaway for me was their recent expansion of mobile, cross-channel, and multichannel analytics for financial providers. Focused on how customers shop for a loan, the dashboard and data are digestible and actionable. The jury’s still out, but strong analytics and easy-to-use tools can help banks improve sales in their lending lines of business.  
  • MoneyDesktop offers digital money management tools – also known as personal financial management or PFM – and their demo at Finovate continued to show their strengths: Nifty tools, clean design, and intuitive UI and UX. The question mark for banks, however, continues to be how well integrated – or better yet, embedded – the experience can/will be for end users.
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Microsoft’s Next CEO Will Contend With Mobility, Platforms, And Consumerization

JP Gownder

Microsoft CEO Steve Ballmer announced today that he will be retiring within 12 months. My Forrester colleague Ted Schadler laid out some of the strategic challenges his successor will face in coming years. Here, I add to Ted's analysis.

Microsoft remains one of the great global technology companies, a solid member of the Fortune 50. Although it no longer enjoys the reputation for innovation it did in the 1990s, it’s a critical player in every aspect of end user computing (including devices, software, browsers, development platforms, and services) and of other technology product and service markets.

As CEO, Steve Ballmer solidified Microsoft’s stronghold in enterprise solutions. Microsoft built and maintained — or built and made itself into a key challenger — in several enterprise markets. Microsoft Office remains a titanic success, even as it faces lower-cost competition from Google and others. Windows Azure has been cultivated into a full-fledged contender in the cloud services market. Exchange remains entrenched in enterprises, as do many of Microsoft’s Server and Tools offerings. Microsoft remains the company to beat in some of these markets, and has become a formidable challenger (e.g. as Azure takes on Amazon Web Services) in others.

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Our Collaborative Computing Future: Oblong’s Mezzanine

JP Gownder

When people think of futuristic user interfaces (Forrester analysts included), they often invoke the 2002 Tom Cruise movie Minority Report. The imagery in the movie offers a compelling vision of how next-generation technologies – gestural control, voice command, 3D visuals, multi-screen interactions – can empower computing experiences.

Where did Minority Report get this vision? From a man named John Underkoffler, Chief Scientist at a company called Oblong. He designed the computer interfaces in the film.

I had the pleasure of visiting Oblong’s Boston office recently, where I saw demonstrations of several technologies. Most interesting to me was the company’s Mezzanine offering, an “infopresence” conference room that the company sells to enterprises today.

The solution involves equipping a conference room (or multiples – it works as a long distance telepresence location) with a number of monitors (5 in the room I visited), teleconferencing equipment (industry standard products work well), and ceiling-mounted sensors (for interpreting gestural controls), and a whiteboard (a physical one, but visible to a camera). Workers control the room with a wand, which works via both gestural controls and a button.

Putting all of these things together, workers can collaborate both within the room itself and with remote teams (or remote individual team members). The resulting experience, in my view, offers two sets of benefits:

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