Krishna Baidya’s Random Musings

Posts Tagged ‘PC

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.

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imagesAccording to a study performed by IDC for the Business Software Alliance, global software piracy is increasing. The report estimated that worldwide losses due to piracy totaled $53 billion, an 11 percent y-o-y increase.

The study estimated that pirated software accounted for 41 percent of all software installations globally, which is neck to neck to legitimate commercial installation of 44 percent. The remaining 15 percent of software was free or open source. Despite successes in fighting piracy in China and Russia there has been 3 percentage point increase in pirated software installation in 2008. All the while, global sales of PC software rose by 14% last year to $88 billion.

According to the study, U.S. piracy was about 20 percent of the total market, the lowest in the world but the highest single dollar loss, it was a major problem because more software was sold in the United States than anywhere else. Much of those losses came from small businesses that use unlicensed copies of popular software programs

There has been mixed results in Asia Pacific, with eight economies showing a decline in the PC software piracy rate, no change in seven and an increase in three. The PC software piracy rate for Asia Pacific meanwhile increased to 61 percent compared to 59 percent in 2007, with dollar losses stemming from software piracy escalating to over US$15 billion in 2008 compared to over US$14 billion in 2007.

The personal computer (PC) software piracy level in Singapore registered 36 percent in 2008, a one percentage point drop from 37% in 2007.  However dollar losses caused by software piracy continued to increase, rising to US$163 million in 2008 compared to losses of US$159 million in 2007. Amidst government action towards using legitimate software and ISPs cooperation in combating piracy, software piracy in China fell to 80 percent, a 10 percentage point drop from previous year.

The study said that the countries with the lowest piracy rates are the US, Japan, New Zealand and Luxembourg, all near 20 percent. The highest software piracy countries are Armenia, Bangladesh, Georgia and Zimbabwe, all over 90 percent.

  • While emerging economies account for 45 percent of the global PC hardware market, they account for less than 20 percent of the PC software market. If the emerging economies’ PC software share were the same as it is for PC hardware, the software market would grow by $40 billion a year. Lowering global piracy by just one point a year would add $20 billion in stimulus to the IT industry.
  • Of the 110 economies studied, Russia has made the most progress, with a one-year drop of five points to 68 percent and a five-year drop of 19 points.
  • The lowest-piracy countries are the United States, Japan, New Zealand, and Luxembourg, all near 20 percent. The highest-piracy countries are Armenia, Bangladesh, Georgia, and Zimbabwe, all over 90 percent.
  • The highest-piracy regions are Central/Eastern Europe (67 percent) and Latin America (65 percent). The lowest regions are North America (21 percent) and the European Union (35 percent).
  • The United States has the largest dollar losses from PC software piracy, $9.1 billion in 2008, because it is the largest software market in the world.

If you are interested in the detailed report, you can get it here.