On Wednesday, Jul 23rd, edition of Wall Street Journal there are two interesting articles.
- For Apple, iPhone Roars and iPad Whimpers.
- As Phones Slow, Carriers Turn to Tablets.
Hmm, what’s going on here – tablet sales are slowing down for Apple and Telecom carriers are betting their future on tablets? Is there something fundamentally flawed in this strategy?
From Wall Street Journal: iPad demand slows while iPhone and Macs rides strong.
iPhones Y-o-Y growth +12.7%
IPads -9.2%
Macs. +18%
Apple is counting on larger iPhone screens and new Smartwatches to keep its revenue growing. iPhone sales are saturating in US but are strong in BRIC (Brazil, Russia, India and China) countries and more than compensating. US Smartphone saturation is hitting telecom carriers. It is not surprising that carriers need to find newer avenues of growth.
There is some logic to eyeing tablets as next opportunity area. Last year, significantly high % of all tablets shipped globally were Wifi only. Telecom carriers are counting on having consumers pick up cellular connected tablets.
Having said that, there is only a narrow window to cash in on this trend. Chances are that this strategy may run its course in about couple of years (Declining tablet sales, phones with bigger screens and Touch-smart laptops, may reduce need for tablet as another household device).
Telecom carriers dread possibility of becoming just a dumb pipe. Here are some ideas to look beyond and tap into trends that are shaping up ahead of us:
Subsidize Wearables?
Apple’s bet on Smartwatches /wearable technology has potential to spark a lasting boom in this segment. And then there is Google glass. Telecom carriers can potentially ride this boom (with or without Apple) and add subscribers by being an active participant in this marketplace. They could use same strategy that they have used for a longtime with phone devices (subsidize wearable devices and compensate with higher monthly packages).
Leveraging location and client information?
The most valuable thing carriers have might be their clients’ location information. Within constraints of what is ethical and legal, this information lends itself to many innovative solutions, for example:
- How about a SMS/Email to tell me when my kids got back home from school?
- How about a wakeup call, a little early on a day when there is an accident on the route that I take to work every day? (PS: remember carriers have your real-time location coordinates).
Mobile commerce?
Looking from a carriers’ perspective, viable mobile commerce solutions are the ones that by-pass credit card companies (and fees associated with those). When executed well – carriers can give sleepless nights to the likes of Visa, Master card, American Express.
Internet of things (IOT)?
Google’s purchase of NEST is an example of the search engine company trying to jump out from consumer screens right into to consumers’ living rooms. Internet of things will generate more data than we humans do (if not already). Telecom carriers can create a rich mix of personal information (Verizon knows when I am driving) with internet of things. For example:
- When I am 10 minutes from my home, switch on the air-conditioner. Or well, ask for permission and then switch it on 🙂
- 5 minutes from my home, switch on the coffee machine.
- Just entering my home: Switch on Pandora radio and tune in to the same station that I was listening to while driving home.
Interestingly, technology to do all of the above exists today. Carriers can help bring discrete automation pieces together with location information to create seamless consumer experiences.
Most interesting, take a share of Mobile Ad pie?
Create or borrow content (Think Orange is black and other content from Netflix), subsidize data transport and more than make-up with Mobile Ads. Can net neutrality play into this? May be. I am not a lawyer but I am sure smart lawyers can figure that out :-).
gauravdhy 