Krishna Baidya’s Random Musings

Posts Tagged ‘mobile internet

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Results of poll by China Internet Network Information Center released this week.

Most young Chinese use mobile phones to access the Internet as these are cheaper and easier to obtain than desktop computers, according to a survey by a government-linked body.

About three-quarters of China’s 195 million web users under the age of 25–roughly half of its world-leading online population–surfed the Internet using a mobile in 2009, up from 50% from a year ago, the poll revealed.

The finding marked the first time that mobile phones emerged as the top platform for Web use among China’s youth, according to the poll by the China Internet Network Information Center, which was released Monday.

The poll offers further proof of the importance of the burgeoning mobile Internet market in China, which has the world’s largest number of mobile phone subscribers at more than 765 million, according to government data.

Nearly 70% of young Internet users still use desktops–implying that many Web-savvy youth are using both methods to get online.

The center said more young people in the countryside had opted for mobile Internet than their urban counterparts, as the handheld device “provided youths in areas where computers are hard to get with an alternative.”

Young Chinese primarily use the Internet to listen to music, play games and watch video clips, the center said.

Source: Total Tele

Gartner predicts that worldwide sales of smartphones will grow by 29 percent year-on-year to reach 180 million units in 2009, overtaking notebooks in total unit terms. The research firm adds that it expects smartphone sales revenue to reach US$191 million by 2012, higher than end user spending on mobile PCs, which is forecast to reach US$152 million by the same point. Currently smartphones account for 14 percent of overall mobile device sales, but Gartner expects by 2012 they will make up around 37 percent of global handset sales. However, it adds that the PC vendors’ cumulative share (Apple excluded) of the smartphone market has remained static at around 1 percent and is unlikely to rise above 2 percent during the next three years, highlighting the challenges faced by PC vendors looking to tap into smartphones.

“PC vendors will find it difficult to simply use existing supply chains and channels to expand their presence in the smartphone market,” said Roberta Cozza, principal research analyst at Gartner. “The smartphone and notebook markets are governed by different rules when it comes to successfully marketing and selling products.” Gartner notes that PC vendors have traditionally introduced smartphones based on the Windows Mobile platform, which have mainly attracted business users. But it adds that PC vendors will face extreme challenges in having to adapt and base their smartphone offerings on a consumer-focused value proposition based on short life cycles, fashion design, hardware and software platform diversity.

Cisco yesterday announced it is buying mobile packet core specialist Starent Networks for US$2.9 billion (US$35 per share). The price represents a premium of 21 percent over Monday’s closing share price. Founded in 2000, Starent completed an IPO in 2007 and reported revenue of US$254.1 million last year, a 74 percent improvement on the year prior, and net income of US$60.5 million. Earlier this year Starent scored a major win with US operator Verizon Wireless for deployment of LTE networks. Cisco expects the Starent deal to close in the first half of calendar year 2010. Upon completion, Starent will become the new Mobile Internet Technology Group led by Starent’s president and CEO, Ashraf Dahod, within Cisco’s Service Provider Business which is led by Pankaj Patel.

The move comes only days after Cisco announced the US$3 billion acquisition of Norwegian video conferencing specialist Tandberg. At the time, Cisco chief executive John Chambers said the firm would be “more aggressive” over the next 12 months in pursuing other acquisitions.

Thought of sharing this write up that talks about how netbook pricing holds key to the embedded future. Has some good arguments that is in align with my thought too.

“The fledgling market for 3G-enabled netbooks was given a big boost this month as the leading U.S. operators moved to embrace this new device class. AT&T announced that this summer it will begin selling mini-laptops with embedded 3G modems from Acer, Dell, Lenovo and others in 2,200 stores nation-wide and online, while Verizon Wireless Communications stores began selling their first netbook – the HP Mini 1151NR.

For AT&T, Verizon and other operators in Europe and Asia, rolling out netbooks is another step towards the creation of a potentially much larger and more strategic market for mobile broadband connectivity in a wide range of consumer electronics and industrial devices, from cameras to games consoles to energy meters to environmental sensors. In a sign of operators’ growing interest in this opportunity, there will be a panel session devoted to the “The New Embedded Mobile Economy” at the GSMA’s Telecoms Marketplace at HiT Barcelona on June 18th.

But the size of the embedded mobile economy is going to depend heavily on the cost of the mobile broadband modules, which is going to depend on the economies of scale available to module manufacturers. In other words, it is a bit of a chicken or egg situation.

Although there are already 68 HSPA embedded modules available from more than a dozen suppliers, according to the GSMA, the market itself is still relatively small. The mobile broadband modem market in Europe, including USB modem devices, PC Cards, ExpressCards, and internal cellular modems for laptops and mini-laptops, reached only 10.5 million units last year, according to Telecompaper. The market research group didn’t break out how many of these units were internal modules, but it doesn’t expect sales of computers with embedded modems to overtake external modems until 2012.

Of course, independent of the PC connectivity market, mobile broadband modems are being added to other devices today. Amazon’s successful Kindle electronic reader is spawning imitators, while the GSMA has identified 15 consumer electronics devices, including cameras, watches and media players, with built-in HSPA modems.

Even so, it is still laptops, and particularly the netbook segment, that is most likely to create the initial scale needed to bring down module prices significantly. While there are signs of strong latent demand for 3G netbooks, potential buyers are bound to be very price-sensitive in the current economic climate. If mobile operators want the wider embedded market to emerge in a significant way in the short-to-medium term, they are going to have to price and promote their 3G netbooks aggressively.”