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Apple top 2011 consumer electronics brand, tablets, e-readers clear winners

Tuesday, February 14th, 2012

Apple iPad3s

Apple iPad3s

U.S. consumer technology hardware and consumable sales fell just one half of a percent in 2011 ending the year at nearly $144 billion, according to market research company The NPD Group.

Nearly 60 percent of all sales in 2011 were driven by the top five categories; PCs, TVs, tablets/e-readers, mobile phones, and video game hardware, according to NPD’s Retail and Consumer tracking services and Mobile Phone Track. PCs (notebooks and desktops) generated the most revenue with nearly $28 billion in sales, accounting for almost 20 percent of sales, but that figure was a decline of 3 percent from 2010.

Tablets/e-readers were the clear winner in 2011, nearly doubling sales to $15 billion in 2011. We have been using our Kindle Fire tablet and WiFi Kindle e-reader much more than we use the netbook we bought a few years ago. We still find that netbook easier to use for work due to its built in keyboard, but for reading, games, music, and surfing the web, the tablet is much handier. So we think the tablet revolution is much more robust than the the netbook surge was.

“U.S. hardware sales growth is becoming harder and harder to achieve at the broad industry level,” said Stephen Baker, vice president of Industry Analysis at NPD. “Sales outside of the top five categories fell by 8 percent in 2011 as consumers shifted spending from older technologies to a narrow range of products.”

Apple benefited from this shift as it was the leading consumer electronics brand for the second year in a row. Among the top five brands Apple was the only one to experience a sales increase, posting a 36 percent rise over 2010. By the critical fourth quarter Apple accounted for 19 percent of all sales dollars, almost twice as much as number two Hewlett-Packard.

Personally, we’re just not that into Apple. It sells good products, but many cost three times more than comparable PCs, Android or Amazon devices. We used Apple Macs for a decade in publishing until less expensive PCs flooded the market. We haven’t been back since except for a couple of test rides that didn’t convince us to switch.

At the retailer level, Best Buy came out on top once again, followed by Walmart and Apple. Staples and Amazon tied for fourth place to round out the top five, a repeat of 2010.

Non-retail channels up 7 percent

Sales through online, direct mail, and TV shopping channels jumped 7 percent and accounted for 24 percent of all sales, up from 22 percent in 2010. Sales through these non-retail channels captured 25 percent of industry revenue in the fourth quarter of 2011.

“While in-store sales fell about 2.5 percent in 2011, the growth in online volumes for retailers meant that retail name plates still accounted for well over four of every five dollars spent on CE hardware in the US,” said Baker.

“Despite their sales strength, retail stores still face serious challenges in 2012 as volumes in the traditional CE categories, which once carried these stores, continue to slide. It shouldn’t be forgotten, however, that a large majority of mobile phones and tablets/e-readers (the two fastest growing CE categories) have mostly been driven through in-store experiences.”

–comments by Allan Maurer, TechJournal Editor.

Online Black Friday spending up 26 percent from a year ago

Monday, November 28th, 2011

comScoreFor the holiday season-to-date, $12.7 billion has been spent online, marking a 15-percent increase versus the corresponding days last year, according to digital measurement firm comScore.

Black Friday (November 25) saw $816 million in online sales, making it the heaviest online spending day to date in 2011 and representing a 26-percent increase versus Black Friday 2010. Thanksgiving Day (November 24), while traditionally a lighter day for online holiday spending, achieved a strong 18-percent increase to $479 million.

2011 Holiday Season To Date vs. Corresponding Days* in 2010
Non-Travel (Retail) Spending
Excludes Auctions and Large Corporate Purchases
Total U.S. – Home & Work Locations
Source: comScore, Inc.
Millions ($)
2010 2011 Percent Change
November 1 – 25 $11,093 $12,737 15%
Thanksgiving Day (Nov. 24) $407 $479 18%
Black Friday (Nov. 25) $648 $816 26%

*Corresponding days based on corresponding shopping days (November 2 thru November 26, 2010)

“Despite some analysts’ predictions that the flurry of brick-and-mortar retailers opening their doors early for Black Friday would pull dollars from online retail, we still saw a banner day for e-commerce with more than $800 million in spending,” said comScore chairman, Gian Fulgoni. “With brick-and-mortar retail also reporting strong gains on Black Friday, it’s clear that the heavy promotional activity had a positive impact on both channels. We now turn our attention to Cyber Monday, a day that Shop.org says will see eight-in-ten retailers running special online promotions. Last year, Cyber Monday was the heaviest day of online spending ever, with sales exceeding $1 Billion, and we fully expect to see another record set this year.”

Black Friday Bargains Boost Web Browsing Behavior

As the online channel increasingly influences offline shopping behavior, consumers turned to Black Friday sites on the web to conduct research in advance of the day’s events. comScore analyzed several Black Friday deal sites for the five days ending Black Friday (Nov. 21-25, 2011) compared to the corresponding days last year, finding that bfads.net led the pack with 3.9 million unique visitors, up 51 percent versus last year. TheBlackFriday.com followed with 3.2 million visitors while also posting the strongest year-over-year growth at 137 percent.

Unique Visitors to Selected Sites Featuring Black Friday Deals
Nov. 21-25, 2011 vs. Nov. 22-26, 2010
Total U.S. – Home & Work Locations
Source: comScore, Inc.
Unique Visitors (000)
Nov. 22-26, 2010 Nov. 21-25, 2011 Percent Change
bfads.net 2,607 3,926 51%
theblackfriday.com 1,364 3,234 137%
blackfriday2011.com* 1,612 1,854 15%
blackfriday.com 668 621 -7%
blackfriday.fm 399 532 33%
gottadeal.com 270 424 57%

*Site was known as BlackFriday2010.com in 2010

Amazon Ranks #1 Among Online Retailers on Black Friday

Fifty million Americans visited online retail sites on Black Friday, representing an increase of 35 percent versus year ago. Each of the top five retail sites achieved double-digit gains in visitors vs. last year, led by Amazon. Walmart ranked second, followed by Best Buy, Target and Apple.

Most Visited Retailer Properties on Black Friday
Excludes Auction Sites (e.g. eBay)
Black Friday 2011 vs. Black Friday 2010
Total U.S. – Home & Work Locations
Source: comScore, Inc.
Retail Property
1 Amazon
2 Walmart
3 Best Buy
4 Target
5 Apple

“Each of the top online retailers generated significantly greater Black Friday activity compared to last year,” added Mr. Fulgoni. “Amazon.com once again led the pack, with 50 percent more visitors than any other retailer, while also showing the highest growth rate versus last year. However, it is telling that the top multi-channel retailers also showed strong growth in visitors, demonstrating the importance of the online channel to the retail industry as a whole.”

FCC broadband push; Kindles in stores; Mark Cuban invests

Wednesday, November 9th, 2011

Mark Cuban

Mark Cuban has invested in a mobile gaming apps firm. See below.

The U.S. Federal Communications Commission has received commitments from most of the large U.S. cable compaies to provide low introductory broadband service to low income households that have not had it before.

The initiative will provide service at $9.99 a month, well below what most households pay for broadband access from cable firms now. Comcast started offering the deal to low income households this year – which it promised to do after acquiring NBCUniversal.

The initiative, aimed at low income households with a child enrolled in the national school lunch program that are not current or recent broadband subscribers, provides the $9.99 service for a two-year period.

Also through the initiative, a tech company is providing refurbished computers to low income households for $150 and Microsoft will offer software, while Morgan Stanley is helping develp a microcredit program to help families pay for the computers.

The initiative is slated to begin in the spring.

Amazon Kindle line available in retail stores

Kindle Fire

A Kindle Fire tablet computer

Amazon.com today announced that over 16,000 stores across the U.S. will be selling the new Kindle family starting November 15.

Customers will be able to visit any Best Buy, Target, Walmart, Staples, Sam’s Club, RadioShack, Office Depot, as well as several other retailers, to experience and purchase the $79 Kindle, the $99 Kindle Touch, the $149 Kindle 3G and the $199 Kindle Fire. The all-new $79 Kindle has been available in stores around the world since shortly after it was introduced.

H’mmm. Will retail availability boost Kindle sales? One of the speakers coming to the Internet Summit in Raleigh, NC, next week says 90 percent of shopping is still done within 50 miles of home at retail stores.

Mark Cuban invests in Mention Mobile

Hi-tech billionaire and entrepreneur Mark Cuban has invested $250,000 in Mention Mobile, creator of innovative social gaming apps,. Cuban, owner of the NBA champion Dallas Mavericks, will be given a minority equity stake in the company.

Specializing in apps infused with Facebook content, the investment will fund the development of Mention Mobile’s new single title apps that utilize the social networking site’s public information to customize games and create personalized content based off the user’s friends, preferences, interests, etc.

The Los Angeles-based Mention Mobile currently has two apps, Trivia Friends and Doodley, which have attracted over 150,000 users in less than three months. Cuban’s investment will fuel the creation of eight to ten new apps beginning with the release of Version 2 of Trivia Friends which is due out in the next week.

Mention Mobile’s creativity, fun factor and advanced Facebook integrations skills are a great combination that I’m excited to be part of,” said Cuban.

 

John Fanning, founding chair of Napster, joins advisory board at Savtira

Thursday, November 3rd, 2011

John Fanning

John Fanning

John W. Fanning, founding chairman and CEO of the original, most-popular peer-to-peer music file sharing system, Napster, has joined the advisory board of Savtira Corp., a new B2B cloud commerce solutions company.

Fanning, also founder of NetMovies, a joint venture with Blockbuster, recently joined Savtira’s advisory board as a resource of knowledge in tech specialties such as streaming, distribution of content aggregation and video-on-demand (VOD).

“John is a pioneer in Internet technologies with a valiant appetite for disruptive innovation that introduces new possibilities and opportunities on a business-to-business and business-to-consumer scale,” said Savtira CEO, Timothy Roberts. “

Fanning founded Napster with his nephew, Shawn Fanning, in 1998. Napster, now an online music store, is owned and operated by Best Buy.

With more than 20 years of experience in Internet and technology, Fanning has introduced such net-related innovations as client-server game play, voice over IP, and auto-upgrading/authentication.

He holds patents for Real Time Search Engine, and Use Sensitive Distribution of Data Files Between Users. Since 1994, he founded numerous successful Internet ventures including, Napster, NetGames, NetMovies, and NetCapital.

“I have been present to witness the birth of many great companies including eBay, Google and Facebook. In my opinion, Savtira’s cloud commerce platform has the qualities that fill a massive void in the market landscape,”
said Fanning. “I look forward to working with the company and playing a substantial role on the advisory board.”

Fanning is known not only as an Internet entrepreneur but also as a financial guru from his work at NetCapital in helping finance early state Internet companies and from having worked at Fidelity Investments in Boston.

Pioneered in music, games, and chess

Additionally, Fanning’s pioneering expands from the music industry to games on and off a virtual arena. In collaboration with partners, Fanning built the first Internet chess server, a project that led to the development of Chess.net, an Internet chess service that is currently owned by NetGames and part of the NetCapital portfolio. NetCapital is a boutique equity firm where Fanning serves as the Chairman.

“John’s background in technology, along with his financial expertise makes him a true asset to our board,” said Roberts. “The level of experience and knowledge is insurmountable; and the possibilities to learn and grow are endless with such strong professionals like John guiding our company toward success.”

Sprint debuts Evo 3D and HTC EVO 4G, phones garner good reviews

Friday, June 24th, 2011

Evo 3D and HTC EVO 4GTwo of the most highly anticipated wireless devices of 2011, HTC EVO 3D and HTC EVO View 4G, debut today, exclusively from Sprint (NYSE: S). HTC EVO 3D, America’s first glasses-free 3D phone will cost $199.99 and HTC EVO View 4G, the first 4G-enabled tablet in the United States, will cost $399.99. Both prices exclude applicable taxes, and the devices require a new two-year service agreement or eligible upgrade.

We haven’t seen one of these yet, but it sounds intriguing. We’re not big on 3D, which seems over-hyped and not that consumer friendly in many cases. But we have been testing an HTC Windows 7 smartphone that performs very well with an intuitive interface, a camera that is easy to use from the get-go and a slide-out keyboard that makes up for our clumsiness in using touchscreens.

“HTC EVO 3D brings to life a visual experience that comes alive in front of the viewers’ eyes and offers crisp, clear pictures on the large display that showcases yet another new innovation from Sprint; and HTC EVO View 4G combines a wonderful tablet experience with the ability to use the optional HTC Scribe digital pen to take notes on web pages, e-books, PDF documents and more, in an easy and natural way,” said Fared Adib, vice president – Product Development, Sprint.

Early reviews have been positive:

  • “A lot of the hype on this phone will be centered on its 3-D capabilities. But take away the 3-D and you still have one of the better smartphones in the market.” – The Wall Street Journal
  • When it comes to gaming on the HTC EVO 3D, I am impressed.” – TheGamerAccess
  • “So, if the way you use your phone and ease of navigation and functions is important, you want the best Mobile UI on the market, and you love glasses-free 3D technology, get the only phone that has them both, the HTC EVO 3D 4G for Sprint.” – VideoGamingPros
  • “The HTC EVO 3D builds on the original EVO 4G in every way possible. It’s thinner, it feels better in the hand, and it’s way more powerful.” – BGR
  • “The EVO 3D is more or less the same ass-kicker its 2D predecessor was, but a year later and faster.” – Gizmodo

Here are a few nice things industry experts had to say about HTC EVO View 4G:

  • “I love the form factor and absolutely solid build quality of the View 4G. It’s a top notch tablet, the size is great, and it’s lovely having 4G WiMAX data speeds wherever I go.”2BGR
  • “The EVO View’s 7-inch, 1024 x 600-pixel glossy display is one of the brightest and most vibrant we’ve seen on a tablet. With the brightness turned up, images appeared bright and colorful even at 90-degree viewing angles.” – Laptop Magazine
  • “The HTC EVO View 4G for Sprint adds a fast 4G connection to the HTC Flyer, an already capable tablet with excellent pen input options.” – PC Magazine
  • “The HTC EVO View 4G is undeniably fun to use. The interface is fast and responsive.” – CNET

The 3D phones are sold via Sprint online and at both Radio Shack and Best Buy stores. HTC EVO 3D requires activation on one of Sprint’s Everything Data plans plus a required $10 Premium Data add-on charge for smartphones.

–Allan Maurer

Engage your customer and make them evangelists for your brand

Thursday, September 30th, 2010

Michael Bird

Michael Bird, Chief Revenue Officer, Netprospex

By Allan Maurer

BOSTON –A major element in using social networking well is to create a process in which the customer engages with the company and the company, in return, engages with the customer. So says Michael Bird, chief revenue officer at Netprospex. One company doing it in a way others can learn from, Bird says, is Best Buy.

“What they’ve been able to do, their application of this, has been amazing,” Bird says. Via their “Twelpforce”  on Twitter, Best Buy engages both its own workforce and its customers.

Something a lot of companies could do

“We all love buying the latest gadget, but then you plug it in and it doesn’t work and we all dread calling customer service. We expect to be let down. It’s just a question of how hard you fall. But they have used Twitter to attack this issue headon building their reputation and creating evangelists of their customers.”

By encouraging their employees to join the Twelp Force and participate in helping people solve problems, they engage their employee base while solving problems for customers in real time.

“It’s something a lot of companies could do,” says Bird.

Netprospex, addresses the key problem in doing business of knowing who to talk to. “You can spend a lot of time and energy trying to figure that out,” he says. Netprospex uses crowd-sourced methods to collect user-contributed business contacts. It also includes social media connections for contacts.“If someone goes to a conference and collects 50 business contacts, he can upload them to Netprospex and we’ll send him 50 of ours,” explains Bird.

Bird is likely to make quite a few new contacts himself when he appears at the third annual Internet Summit in Raleigh, NC, Nov. 17-18, which in addition to participants from top Internet brands, draws around 1,000 attendees.

Bird has deep experience in sales, media and the tech field. He has nearly 20 years experience in media, six with CNET Networks and 13 years with Ziff Davis Publishing. He was with BzzAgent, a company that pioneered developing word-of-mouth media, helped launch a small Internet company and helped build a boutique venture capital firm, a $50 million fund that invested in early stage startups.

A new level of influence

In that time, he’s seen social networking take on “A new level of influence. The culture is evolving and using it in a much deeper way. It has started to permeate the skin and enter the central nervous system.”

Although you have to drop into the teens on Netprospex’s  Social Index of the top 50 companies using social media in its Social Business Report before you find a non-tech company at the forefront, even many smaller firms are managing to use social media well,  says Bird.

As an example, he points to the food trucks bringing a variety of gourmet meals in numerous cities now. “They promote where they’re going to be through social media, Twitter, Facebook. You should see the lines, they’ve built so much demand and engagement. They’ve built a phenomenal business that’s growing astronomically.”

Smaller companies have an advantage in using social media, he says. “They’re not as encumbered by bureaucracy. And, he points out that by using the Internet and social media they can compete nationally or even internationally.

Creating brand evangelists

The way to get some bang for the buck out of social media, says Bird, is to create evangelists for a firm and its products. To do that, he says, “Once you sell someone a product, you create an evangelist by solving a problem.”

It may not be as hard as some might think, however. “You would be amazed at how much enthusiasm people actually have for brands,” he says.

“A huge percentage of conversation is about a product, a car someone drives, the PC they use, a movie they liked, where to go to dinner. We talk about products all the time and generally in positive ways.”

So, once you engage with a customer, provide them with information that makes them feel like an insider. “Give them information that makes them feel as if they went to a BBQ and talked with the brand manager. Tell them all the stuff you can’t say in an ad. Your level of engagement will go through the roof and you can’t get them to stop talking to you.”

Now that’s a problem lots of companies would be happy to have.