post pc era? or the beginning of the platform era (and the end of the consumer electronics (ce)...
TRANSCRIPT
Post PC Era?Or the beginning of the
Platform Era(and the end of the Consumer Electronics (CE)
business as we know it?)
The Size Of The CE Industry
• CE biz estimated to be $186 billion in 2011 (audio, video, computing, imaging, wireless, etc...)
• PC’s are the industry’s main driver
• Gartner states about 352 million PC’s sold in 2011
• But smartphone unit sales are now outselling PC sales
• Tablets est. to outsell PC’s by 2015 at 500 million units sold
Winners and Losers•Winners: Apple, Google, Facebook, Amazon,
and possibly Microsoft
• Losers: PC players (Intel, HP, Dell, Acer...), Kodak and the Japanese CE business
• Japanese CE players lose $17 billion dollars in the last quarter of 2011. Panasonic loses $9 billion by itself, followed by Sony, Nintendo, Nikon, Toshiba, Sharp and Hitachi all with losses
• Apple makes $13 billion
What’s Changing The Landscape?
•Mobile (OS, software, hardware)
•Apps
•The Cloud (content, commerce & communications)
What the losers haven’t mastered is the PLATFORM
Who Are The Platform Players?•Apple: Apple iOS devices lead the
market
•Google: Android is the largest mobile OS
•Amazon: Is the Lord of e-commerce and a driving force in Cloud Computing
•Facebook: At 800 million users no other online entity has more active installed base
•Microsoft? Has one more LIFELINE left
Who has what?Apple Google
Amazon
Microsoft
OS yes yes no(?) no yes
Apps yes yes yes yes yes
Cloud yes yes yes yes yes
Hardware yes yes yes TBD yes
Data Mining /
Customersyes yes yes yes yes
What do the losers have?
Samsung
Sony LGPanaso
nicDell
OS yes yes no no no
Apps yes yes no no no
Cloud yes yes no no no
Hardware yes yes yes yes yes
Data Mining /
Customersno yes no no yes
Secret SauceEach One Of These Companies Has At Least One Special Ingredient To Keep Customers Engaged
• Apple: WOWING - 365 (and growing) retail store base
• Amazon: SELLING - 69 distribution warehouses and growing with the possibility of same day delivery in the top 10-20 markets and the Kindle Fire
• Google: WATCHING - YouTube and the coming of SmartTV
• Facebook: SHARING - and their application platform
• Microsoft: SPENDING - They can lose money forever on a project
Can The Legacy CE Companies Catch Up?
• NO!
• Takes five years and billions of dollars to build and establish an OS
• Takes two to three years, and a billion dollars to build a cloud data center
• It takes a product strategy that synergizes all the products and services in your portfolio (Sony has silos of products)
• It takes a core business that makes money
• And it takes a direct relationship with the consumer
• Uber devices like the smartphone and tablets are eliminating and swallowing up whole product categories: imaging, gaming, gps, TV, and even computers
What’s the future hold?•New markets and new solutions
(and they all need Apps, cloud computing and mobility):
• Health: Self diagnostics and wearable computers
• Banking: Near Field Communications, banking without banks and eWallets
• Transportation: Location based services and the coming of smart cars
• Retail: Apple and Amazon are changing the face of brick and mortar and online retailing
What Will ThesePlatform Companies
Look Like In The Future
• Apple with $100 billion dollars on the books, and growing, will become the first billion dollar virtual consumer bank via Siri and iTunes
• Google will build a line of Smart Cars
• Facebook will be your telephone company
• Amazon will supply virtual personal shoppers that will know more about you then your parents, siblings or significant other