Chinese Internet Giant Baidu, started 2014 with trends that are not unfamiliar to the market but in a more extreme way: strong revenue guidance showing acceleration, partly due to acquisitions, while margin outlook indicating more aggressive marketing to grab mobile market share in addition to a drag by loss-making subsidiaries like Qunar and video. As more advertisers are ready for mobile marketing (60% with mobile landing pages) and Read the Full Article
You already know that mobile has been and will likely continue to be the key driver of growth, innovation and disruption in the Internet sector. But, for mobile to develop into a sustainable and viable consumer platform, we believe a vibrant advertising environment must also develop. As the largest category of desktop ad spend with >40% share, it makes sense that search should be a meaningful part of the mobile ad equation. For Google, Read the Full Article
In competition with HTC and ZTE for the emerging markets, Lenovo unveiled a TD-LTE smartphone, three new mid- to entry-level S series smartphones (S860/S850/S660) and a 10″ Yoga Tablet. The A788T TD-LTE smartphone features a 5″ IPS display and Marvel’s ARMADA quad-core 1.2GHz CPU. The smartphone also supports TD-SCDMA and GSM.
The three S series smartphones appear to target mid-to entry-level consumers. The smartphones range from 4.7″ to 5.3″ in display size and each run Mediatek’s Read the Full Article
Samsung’s and Sony’s recent updates suggest strategy changes in their PC businesses. Sony announced on 6 Feb 2013 plans to sell its PC division to a private-equity firm, Japan Industrial Partners (deal is pending). Samsung’s November 2013 Analyst Day focused on tablet and smartphones, leading to expectations of them exiting PCs. Samsung is expected to pull back from certain PC segments (i.e., desktop) and focus on higher-end notebooks.
We analysed Samsung’s and Sony’s PC businesses on a variety of screens including: (1) product segments, (2)
end-market, (3) region, and (4) price-band and compared these to existing PC vendors’ market share. We use market share as a proxy to determine PC vendor ability to gain share from the remaining PC segments of strength for Samsung and Sony. Overall, Acer and HP had the most overlap with Samsung and Sony’s PC businesses exiting 2013 and could grow market share Read the Full Article
Lenovo will acquire 100% of the Motorola Mobility business including mobile devices, 3,500 R&D staff, the Moto brands (Moto X and Droid) and licenses to the rich Google/Moto mobile patents with ownership of over 2,000 additional patents. The total price tag is US$2.91bn including US$660mn in cash, US$750mn in Lenovo stock and US$1.5bn three-year interest-free promissory notes.
Why Lenovo Made A Desperate Bid for Motorola ?
We believe the key motivations for Lenovo to acquire Moto were – IP protection in developed markets and the highly recognizable Moto brand. Lenovo’s weak IP portfolio has been one of the key challenges for its smartphone sales into Read the Full Article
Since the introduction of smartphones, and tablets soon after, the technology industry has undergone a significant shift in the demand structure towards smartphones/tablets (mobile devices) and away from traditional TVs/PCs. We define this as demand polarisation. After spreading through developed markets from 2010, last year has been marked by rapid demand polarisation in China and other emerging markets.
This means that demand growth of mobile devices will begin to decelerate from this year, resulting in inventory issues and higher ASP pressure on component makers. Ultimately, we expect a fierce price competition among mobile device Read the Full Article