As we go to print, the nominations for the UBU elections will have closed, with the names of candidates ready to go up around campus and online at www. Over the next month there will be canvassing, Hustings and elections. So, look out around campus and check out online for all details and T Less. So, look out around campus and check out online for all details and The Bradford Student will be covering all the results in the March edition. Simply insure them with Endsleigh Pick and Mix your insurance cover.
We were out for the month of August but now coming back for more. Alan is also very busy, he was for example doing a big financial conference in Sao Paulo in Brazil. And remember we both tweet, so Alan is alansmlxl and I am of course tomiahonen so you can keep an eye on us following us on Twitter.
Posted by Tomi T Ahonen at What is the single biggest factor, one that totally overrides all other factors in the global market success of any given smartphone? Is it the Operating System OS? Is it the features set? Is it touch screen? Is it size of the phone? Is it size of the screen? Is it battery life? Is it camera resolution?
Is it the apps store? I'll tell you what it is. The smartphone market, differing from other markets for consumer technologies, like home electonics, the PC industry and cars for example, is not ruled by normal free market economics. Yes, the smartphone market has two dramatic peculiarities, which so totally distort the market, that if you don't understand these two, you will never succeed in the market as a global player.
And yes, the biggest factor to smartphone success is none out BuyFlirt cafe dating the above list. In the first essay about the realities of smartphones, I wrote about the scale of the smartphones market which BuyFlirt cafe dating approaches million units sold annually and is growing very strongly inspite BuyFlirt cafe dating the economic downturn. In this second essay I'll discuss the role of the sales channel and of what is called "carrier relationships" ie operator relationships for the handset makers.
Within carrier relationships lie two factors. The handset subsidy distorts the market opportunity enormously for all countries where it exists. And the other distorting factor is that many smartphones in use are not actually purchased by the person using the phone. Together these two factors cover about two thirds of all smartphones sold around the world. True free-market economics, where a smartphone is judged primarily on its merits and its marketing, only applies to one out of three smartphones sold worldwide.
Lets start with the easiest part to consider: They may be referenced as enterprise, corporate or business customers, but in this essay I will use the term enterprise customer to mean the largest types of corporate and government customers.
The distortion with smartphone sales is most pronounced at the largest enterprise customer end of business users of smartphones. With large enterprise customers, the employees get typically business-oriented smartphones like a Blackberry or Nokia E-Series, and the enterprise customer negotiates a heavily discounted rate for the telecoms traffic, usually the bigger the client, the bigger the discount.
Secure wireless email was one of RIM's early competitive advantages in bringing the Blackberry to the market. Recently the Blackberry was even accepted for President Obama's use with premium level security systems added.
The larger the BuyFlirt cafe dating customer, the more they need specialized services and sales attention from their suppliers. They have dedicated support staff serving only their one customer. Oh, your executive Tomi Ahonen is a James Bond fan, and he would BuyFlirt cafe dating a phone number onto his company phone? No problem, let me find one and get back to you Take a typical large enterprise customer in a major European country, with 5, company phones. Those phones could be expected to be replaced very roughly speaking, every 2 years.
So we can count new phone sales of 2, units per year. If we say an average smartphone costs dollars, that means Backdating facebook posts online dating how long before meeting in person total sales volume of half a million dollars.
The rest of thedollars is money paid directly to the smartphone manufacturers who provided the phones, ie RIM Blackberry or Nokia BuyFlirt cafe dating etc. But the telecoms traffic, generated Free dating sites in namibia dominican republic free dating website Asto Aerospace Promotion Prize 2 this customer annually, with 5, company phones, in a typical European large country say like the UK, would be about 60 dollars per enterprise subscription per month.
Doing the math, the total value of that one enterprise customer annual contract is 3. In reality the industry is competitive and the enterprise customers are most aggressive in their price negotiations, so this number is BuyFlirt cafe dating much smaller, probably half or less even, but if we say half, it meansdollars of profit earned on telecoms traffic, compared with 25, dollars earned on the handset sales in BuyFlirt cafe dating best case.
So the profits from the traffic generate 25 times more profits than even the best case of handset sales. Any competent salesperson looks at this equation, and never let the part - handsets - threaten his livelihood and the 3.
BuyFlirt cafe dating makes sense to "cut the profit" to zero on the smaller amount, and show the customer that you are offering good value to them, while attempting to hold the maximum profit on the larger item that they are buying the annual contract.
Meanwhile, on the side of the "client" ie the enterprise customer making purchases for thousands of handsets and bulk telecoms services; the driving factor is While enterprise customers are so large that they have a BuyFlirt cafe dating purchasing department and some staff to cover the telecoms services, who do handle the actual contract negotiations for the enterprise customer, that telecoms purchasing executive is a very modest power executive, compared to the IT department.
The purchasing decision specifically relating to any smartphones, is for all practical purposes overridden by the enterprise custormer's IT department. And the IT department are not looking to find the "best smartphone" for their BuyFlirt cafe dating I need to explain this a bit. Because of typically dozens of separate IT systems interconnected, any new element introduces many BuyFlirt cafe dating of potential contlicts. The IT department knows if they accept a new smartphone platform now, they have to support it for years to come with ever increasing staff, plus handle all conflicts that inevitably arise when their employees start to mess with these new phones and interacting with company soffware solutions and also with their private interests, you know, like wanting to Twitter or do Facebook updates "for work reasons" etc.
So the IT department resists doggedly the addition of any new BuyFlirt cafe dating to their world. The Key Account Manager will not jeopardize that contract worth millions for the sake of some fancy new smartphone. This means that for any smartphones that want to invade the enterprise phones space, they have to start from the smaller businesses, and then build up a porfolio of services, apps and reference customers.
Then they can hope to start to sell to enterprise customers. This is a VERY long process. This is years not months. It BuyFlirt cafe dating not mean that Android or iPhone or whatever new device cannot break into this segment, only that the decision is not based on 'which phone is best' type of logic. The decision is a long process. For RIM it took five years of consistent sales effort to grow from zero to 5. Comparing that to today when RIM has shifted to consumer markets, they sell another 5.
Or take Apple iPhone. Then Oppenheimer revealed that the BuyFlirt cafe dating number of iPhones sold to business customes of any size was 35, units. What does this mean? It means that for business-oriented smartphones, the market has severe 'damping' effects which reduce volatility, promote stability and reduce opportunity. Or in other words, inertia rules. Whether the next Blackberry or E-Series phone is truly a great phone or only mediocre; or even below par as a smartphone against its supposed rivals; it will still automatically get significant market success in the enterprise segment, because all variables are stacked against innovation and change.
How many of all smartphones are used as employee phones in businesses BuyFlirt cafe dating any size? Early on almost all smartphones were sold for business use, but today, very roughly speaking, I'd say about a third of all smartphones fall into the business-oriented category, including sales to SME customers. After we remove employee phones, we are left with consumer oriented smartphones which is about twice as big as he first group.
For this market, the world has roughly speaking two relatively similar-size markets, with one glaring difference between markets: Most who read this blog essay understand the industry well enough, to know that the real price paid in America for an iPhone 3GS is not dollars.
It is sold BuyFlirt cafe dating a 2 year contract, which then includes an BuyFlirt cafe dating mandatory installment payment plan for the rest of the price of the 3GS. Even so, many will not know the Gay Tirol, free gay dating, Austria : price of the 3GS.
And worse, the public press talk of the 3GS being a dollar phone, or talk of its dollar price tag, so the mass market perception is that the latest iPhone costs Sie sucht ihn schramberg pick up artist online dating profile Request Send a request dollars. This is the murky science of handset subsidies and how it confuses markets.
Imagine you are buying a car. The car costs 25, dollars. So you have to have 5, dollars in cash to pay the car BuyFlirt cafe dating, and the rest of the 20, dollars plus usually quite a lot of interest you pay in same size monthly payments for the next three years.
So you paid 5, dollars today and drove home BuyFlirt cafe dating your fabulous new car. But you know fully well, that you are not BuyFlirt cafe dating a "5, dollar car" even though that is all you actually handed to the car dealer today.
You are buying a 25, dollar car. You know that it was partial payment, you committed to three years of installment payments to pay off the remaining Yes, anyone who thinks in America that the price of the iPhone 3GS is dollars, has been fooled. Exactly like the 25, dollar car that you bought paying 5, dollars up front, did not transform into a BuyFlirt cafe dating, dollar car" the real cost dollar iPhone 3GS is not somehow with a magic wand converted to a " dollar smartphone".
The iPhone 3GS is and continues to be a dollar phone, in every country, whatever the actual payment plan. Same is true of the N97 which in Italy costs about BuyFlirt cafe dating and in the UK is available "for free" with contract. BuyFlirt cafe dating dollars per month. It does not have to be that way. In advanced markets in the industrialized world, nobody flinches that BuyFlirt cafe dating premium phone like the iPhone 3GS or Nokia N97 costs dollars, and if you want it, you pay that amount.
Its BuyFlirt cafe dating a dramatic cost. Our plasma TVs and our laptop PCs can cost significantly more than that. Meanwhile, in the developing BuyFlirt cafe dating, almost always. Then it doesn't matter how great your touch screen is, or how fancy your camera resolution is, or which operating system your smartphone runs, or how many apps you have in your apps store.
The subsidy totally distorts the market. That includes non-smartphones and smartphones. To understand how rare it is for a given phone model to receive a subsidy with one carrier in one country, the world has BuyFlirt cafe dating and 1, actual phone models in production by over 30 manufacturers at any one point in time and the big 3, Nokia, Samsung and LG each have more than 50 models in production at any one time.
It does not matter one iota, in a subsidied phones market, if your phone is "the world's best superphone" by all reviews and experts, and is the coolest, slimmest, hottest, best smartphone with all the bells and whistles, endorsed by all supermodels and superstar athletes and rap starswith the best user interface and biggest apps store and all sorts of content.
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