connected device market: embrace the chaos

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

Technology Business Research Webinar Series

July 20, 2015

Connected Devices Markets: Embrace the Chaos

TBR

TBR Webinar Series | 7.20.15 | www.tbri.com | ©2015 Technology Business Research Inc.


What is the opportunity in connected devices?

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Connected Devices Markets: Embrace the Chaos — Presenters

Jack Narcotta

Analyst

IoT and Devices

Email: [email protected]

Twitter: @JackN_TBR

Ezra Gottheil

Principal Analyst

IoT and Devices


Twitter: @egottheil

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mailto:[email protected]


TBR


Connected device markets will be chaotic, requiring vendors’ strategies to be fluid and dynamic

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Connected device definition

•Wearables, set-side boxes, modules

•The Internet of Things (IoT)

Impact on total addressable market

What are we waiting for?

New device strategies

Obstacles and disruptors

Connected devices: IoT and expectations

Gauging opportunities for success

•Evaluating consequences of delays


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How will connected devices supplement the devices market?

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Smartphones

Declining ... but more slowly

Tablets

Market shrinking, where is the breakthrough?

PCs

Productivity workhorse Windows 10: helper or hindrance?

TBR


What are connected device users waiting for?

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• Leaders, especially those other than Apple

• Use cases

• Services surrounding the device

• Usability

• Integration among devices

• Broad availability


Connected Devices

TBR


What are vendor companies doing?

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Exploring new routes to market

•Same market, new angle

Evaluating partnerships

•Few vendors can go it alone.

•Alliances are the new normal.

Defining strategies

•Amplifying strengths

•Willingness to embrace risk


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What are the obstacles?

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•Niche use cases

•Technology supply greater than demand

•What is the killer app?


CONNECTED DEVICES

TBR


What companies are disruptors, and why will they be successful?

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New routes to market

•APAC’s consumer market

o Coolpad, Micromax

o Lenovo, Xiaomi

•Xiaomi: Zero to global No. 2 in six months, trailing only Fitbit

Customer loyalty

•Connected device attach rates

•TBR estimates Apple Watch at ~10%

Retail scale

Proven brand and technology


TBR


Connected devices will impact commercial markets

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Evolution into IoT

Commercial markets fuel:

•Standards development

•Reference architectures

•Management

oServices

oSecurity

•Analytics

oSoftware

Opportunities to cross into consumer markets

•Partnerships and alliances


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Consumers drive connected device innovation while commercial organizations fuel adoption

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Consumers’ expectations:

•Budgeting to purchase up to $300

•Some devices are connected today ...

expect all devices will be connected

Integration of connected devices requires commercial solutions:

•Extend value of devices, services.

•Predictive analytics optimizes behavior.

•Allow for automation and greater control.

•Monetize by creating new business models.


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An upcoming $74B opportunity will be divided among only the few vendors that execute properly


Connected devices create a substantial new pool of revenue.

•New market growth driver

Winning strategies will anticipate, not react.

•Take cues from Xiaomi, Lenovo, Micromax and Coolpad.

First-mover advantages are important.

•You cannot win if you do not play.

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The road ahead, without connected devices, is primed for a long period of decline

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Mac PCs outperform global PC market

•Mac revenue up 1.7% year-to-year

Windows down 10.6% year-to-year

Strong growth in Chrome

•But from a small revenue base

The iPhone is a juggernaut.

Android: A race to the bottom?

•Revenue down 11.4% year-to-year

Windows Phone on life support


$29.6B

$5.6B

$642M $1B

$37.6B

$45.7B Windows

OS X

Windows Chrome

iOS

Android

1Q15 Revenue

Revenue totals indicate sum of revenue of devices powered by stated platform and manufactured and/or sold by vendors included in TBR’s Devices and Platforms Benchmark.

TBR


Connected Devices Markets: Embrace the Chaos — Contact Information

Questions?

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James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research

Jack Narcotta

Analyst

IoT and Devices


Twitter: @JackN_TBR

Ezra Gottheil

Principal Analyst

IoT and Devices


Twitter: @egottheil


https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

https://www.linkedin.com/company/technology-business-research







TBR


PC Vendors

Handset Vendors

Tablet Vendors

The Devices and Platforms Benchmark provides ongoing coverage of connected device, PC, tablet and smartphone vendors and their strategies

Benchmarked Device Vendors

• Acer • Amazon • Apple • Asus • BlackBerry • Dell • Fujitsu • HP • HTC

• Huawei • Lenovo • LG • Microsoft • Panasonic • Samsung • Sony • Toshiba • ZTE

Nonbenchmarked Influencers

• Coolpad • Google • Intel • Micromax • Xiaomi

• AMD • ARM • Broadcom • NVIDIA • Qualcomm

TBR ranks and scores the top brand-name device companies by device segment financial metrics and chronicles interactions with key ecosystem partners that influence the devices business

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Content Ecosystem


TBR


Devices Syndicated Research Coverage

Devices and Platforms Benchmark Vendors (Benchmark XLS data is also available)

Devices Reports

• Acer • Amazon • Apple • Asus • BlackBerry • Dell • Fujitsu • HP • HTC • Huawei • Lenovo

• LG • Microsoft • Panasonic • Samsung • Sony • Toshiba • ZTE

• Acer* • Apple • Asus* • Dell • Fujitsu • Google • HP

• Intel • Lenovo • Microsoft • Samsung*

Corporate IT Buying Behavior & Customer Satisfaction Studies

Market Forecasts (Market Forecasts XLS data is also available)

• Desktops • Notebooks • Services & Support

• Devices and Platforms Market Forecast**

TBR Devices Syndicated Coverage

*Semiannual publication **Annual publication

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About Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators.

Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to address client-specific issues further or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.

Contact Us

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This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact ©Technology Business Research, Inc. for permission to reproduce.


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