Some weeks ago, I did a top 10 list on the most tech savvy nations on Earth today. I don’t remember if India made that list. If I didn’t put them there, my mistake; they deserve to be. They’re one of the biggest smartphone markets in the world today.
India has surpassed Japan as the 3rd biggest smartphone market today. They’re behind only the United States and China. Their favorite brands are Apple, Samsung and a local Indian phone maker called Micromax. India’s smartphone use has increased 163%, compared to the global average of 39%. One can also thanks improved distribution and marketing in the countries. Keep in mind India’s population?was 1.24 billion in 2011. Not only?is their general population growing,?so is their middle class. The number?of middle class families was 5% in 2005. By 2015, it’s expected to be 25%.?Although it’s a small part of the population, these numbers are expected to continue rising.
Also keep in mind companies like Apple are losing share in revenue in Europe, while gaining share in India. With Italy, Spain, Greece, Portugal, Cyprus and Ireland near economic meltdown, and the UK and France in economic uncertainty, that’s to be expected. Even in the US, the smartphone market growth is only 19 percent. Compare that with India’s growth and 86 % in China. Does the mean more of Apple and Samsung’s being is going to go to India? Does this mean technology is shifting West to East? What, if anything, does this potential shift mean to you?
One of my favorite pastimes is going to Barnes and Noble. Sometimes I go there to buy books and sometimes I go there just to browse. But if numbers like this keep up, pretty soon I may not be going there at all, and neither may you.
The Barnes and Noble financial report is out, as it struggles to compete in the digital reading industry. In this quarter alone, they’ve lost nearly $119 million dollars. If that wasn’t enough, so far in fiscal 2013, (which started in October 2012) they’ve lost 1.3 billion dollars in revenue. From what I’ve been reading, books and e-books like Hunger Games and Fifty?Shades of Grey have kept the company’s head above water. Nook Media, B&N’s answer to Kindle and other e-book devices, are hardly doing better. It reported $108 million dollars in revenue this quarter. That may sound like a lot, but is a third less than this time last year, and nothing compared to other read devices. Some experts say Nooks lack the app support of other devices. They did slash prices and collaborate with Android and Google to improve apps and prices, but was it too much too late?
Well, never say never. At least solutions are being thought of and executed. Programs like Simple Touch are being offered. And B&N are offering other apps and programs that should be?out before the holidays. I really hope these things work. Though I don’t own a Nook, I want them to do well. I read somewhere where all the physical Barnes & Noble locations may be bought out. Goodness, I hope not! Now what am I going to do to replace my Saturday ritual of reading a book and having my cappuccino? But even if it that catastrophe happens, Nook will be the only thing they have to rely on. Can Barnes and Noble survive? Will they?
Ever hear of Fab? It’s a retail store site where you can get lots of alternative stuff. I get a lot of artwork, like this cool bull’s head (don’t worry animal lovers, it’s just a piece of art, not a real bull) off Fab. I even got an old school record player there. You can even get food and clothes from Fab. It turns out Fab is getting something too, and I’m not talking business from the consumer.
Fab announced it raised an additional $150 million, bringing investments?over $300 million. Even before these investments, Fab was worth over a billion dollars. And the Fab spokesperson expects more investments to come. Who is making the investment? One player is Tencent, China’s largest Internet portal. Tencent owns online messaging, gaming outlets, and a whole hosts of other Internet services. ?As of January 2013, Tencent has around 800 million users. Another cast member is the Japanese trading company Itochu. Many car companies and the food company Dole have their hand in Itochu. Andreessen Horowitz and Atomico are also involved. An obvious reason Tencent will play as a great investor is because it will open door to reach Chinese consumers. Fab CEO Jason Goldberg says it will help bring customers around the world.
But is this too much? I agree, any business needs investors in order to survive, much less thrive. Many believe Fab is growing too fast and raising too much money. But I always thought investors would reserve this kind of help if businesses were in trouble. According to Fab’s own website, in it’s 2-year existence, it has more than 11 million in 26 countries, grew 5 times over in 2012, and has won many an award. Does this sound like a business in trouble? It doesn’t to me. Then why does Fab need to raise all this money in a short time? Goldberg says it’s for improvements and expansions. But can’t he use his own capitol for that? By giving a successful company all this money, what about those companies that are struggling? Do we just let them die a slow death?? That’s my concern. But what’s yours? Do you give a successful young company more money for better success, or should we give it to a small business that just needs that extra financial push?
Have you ever used the Apple app Fifty Three? I’ve used it on several occasions to improve my woeful drawing skills an do other creative things? With this new money raised, we may be able to do a lot of other things.
Due to venture capitalists like Andreessen Horowitz, Jack Dorsey and Chris Dixon, this paper drawing app has raised approximately $15 million dollars. With this money, Fifty Three hopes to expand, build new apps and get new hardware. Fifty Three has been used as a powerful business tool. Since it’s beginning, the app has been responsible for over 80 million projects. It’s already won Apple App of the Year award. It’s also expected this funding will help social collaboration to create new projects and better existing ones. Also, this funding will help hire more engineers in their headquarters in New York and Seattle.
I’ve used the Fifty Three app for fun and self-improvement purposes, but it’s becoming a powerful tool in the business world. They said they don’t even need this money, and it sounds like they don’t. So I like this innovation, and I’m glad this money is being used to make a good thing better. But shouldn’t they be spending that money on apps that need more help to survive? Or am I being crazy?
To better compete with their rival Samsung, Apple is now debating making iPhones with bigger screens. Cheaper models and diverse colors have come up in the conversation.
Apple is looking at 4.7 and 5.7 inch screens for next year’s new iPhones. There is a movement within Apple walls to make ‘phablets’, bigger smartphones in sizes, but they still aren’t tablets. They want to move away from the standard 3.5 inch screen used in every Apple phone since 2007. Keep in mind the very successful Samsung Galaxy S4 is Galaxy Note 2 screens?are 5 and 5 1/2 inches. But wait, there’s more. They’re ?planning to launch iPhone 5S next year, which is rumored to used fingerprints to identify the user. There are plans to give cheaper versions different colors, while keeping the more expensive ones black and/or white. These cheaper version if iPhone 5S is rumored to go as low as $99. I’ll believe it when I see it.
So what do you think? You know Apple is trying to get back to it’s heyday of being number one in the technology game. Remember when their stocks were?nearly $700 a share? Remember when they thought they were unstoppable? Now Samsumg is taking over that role, especially in rising markets like China, which now has the world’s largest smartphone market. It’s obvious to me the bigger screens?are a?way for Apple to compete and take the #1 spot, especially in China. Do you think it will work?
Now it’s almost time for Waze?to be bought?by Google. Waze is an Israeli based navigation and traffic?app. The purchase will probably be announced and finalized during this week.
As much as $1.3 billion dollars are expected to change hands because of this buy out. Some fear Google will significantly alter or cancel the app altogether. Apparently, they have nothing to worry about. Waze is expected to run as it always has. Though Waze has 47 million users, less than a third are active. This app is known for it’s pristine accuracy. It’s being constantly updated as users are driving. Ironically, Apple made a bid for Waze.
Keeping Waze independent is the best thing Google can do. This app has tens of millions of users around the world, and it praised for running smoothly. Why ruin a good thing? Plus, with Google’s backing, instead of changing Waze, it can expand it. This is a great opportunity to increase active users and users in general. If they can do that, then both companies will get stronger. I can’t believe Apple made a bid for them. I kind of wish they had. It would have saved Apple from one of the most embarrassing blunders, Apple maps, in tech history. But how long will Waze remain independent?
