Sunday, November 7, 2010

US Smartphone increasing penetration - What does it heralds?

According to the comScore, in U.S every 4the citizen is now owns smartphone. It was 13.6 percent penetration last year which has now increased to 22.5 percent this year.

With such a sharp rise in the penetration of smartphones, a serious medium to use internet is emerging. Now if you want to use Facebook, twitter or small/minor internet usage, one would prefer to use smartphone. Currently for our 80% usage smartphone may suffice for category of persons who use internet for less than 1 hour per day.
Now in future, with advancement in smartphones & with the high speed internet connection in our phones it will rise to 100%, thereby over time in about 7-10 years smartphones will fulfill all requirement of 80 percent of the populations.

This is a very important insight which can be drawn. Companies which are into PC making business need to revolutionize their product ranges to come up with new innovative products which can fit into the GAP.
Just to give you an example, some time back Apple came up with 'i-pad'. This is the right device which fulfills the basic necessities for about 80 percent of the people.

I-pad is a kind of device which will cut into the share of many product categories. To start with, it can cannibalize the sale Apple products like Mac Computers or i-pod. It is slated to give tough competition to e-book reader by amazon 'kindle'.

If we look into the future and try to extrapolate the trends, we can see that in next 7-8 years usage of PC will come down drastically as their will be much more sophisticated devices available to access internet. Devices like smartphones, i-pad etc. The time has come for plain vanilla PC developers to innovate or parish. They won't get too much time to recover once competition has come up with 'great' device to access internet.

Note: I perceive that the usage of PC's will go down for general public about 80-85 %, rest 15-20 percent will still need PCs.

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