Despite the growing use of smartphones, the main sector companies still face the challenges of this segment, such as profitability and user privacy.
Intel made his fortune with the chips that drive personal computers and Microsoft software that goes inside. The secret ingredient that Google is finding what you’re looking for on the Internet. But things are changing for these titans of technology due to a force majeure: the rise of mobile devices.
These and other technology companies are striving to reinvent their business models, now that the old model (a client sitting across a desk fixed fixed) is no longer valid. These companies once altered some traditional businesses, carrying out activities ranging from the sale of books and music to booking hotels.Now they are destabilizing for the widespread adoption of smart phones (smartphones, in English) and tablets (tablets, in English).
“Companies find they must redesign the way you think and wonder: ‘What’s what our customers through the mobile satellite which is very different from what we deliver through our traditional way online?’ “said Charles S. Golvin, an analyst at Forrester Research, the technology research firm.
He added: “It’s fun to talk about the traditional online business as if it had been going on for centuries, but the last century.”
The giants of the industry are still highly profitable drivers of the economy. However, the shift to mobile computing devices is causing adverse effects, among which are included the disappointing earnings reports released last week by Google, Microsoft and Intel. These impacts are largely related to revenue from mobile devices. Investors await in suspense about Facebook gains, which will be revealed on Tuesday, for the same reason. The new chief executive of Yahoo, Marissa Mayer, said Monday that the company had failed to capitalize on the mobile market and should become a predominantly mobile company.
The demand for Intel chips for computers (which are much more profitable than those used in smartphones) plummets. At Microsoft, the PC software sales dropped dramatically. In Google, the price advertisers pay when users click on your ads has dropped a year ago. This is due, in part, that while mobile ads are soaring, they cost less than online ads, advertisers are still trying to find ways to make them more effective.
Since it began trading on the stock market, Facebook has lost half of its value on Wall Street by the pressure to make more money from mobile devices, as six out of ten users enter their Facebook accounts from their phones mobile.
The profits now depend on the skill of technology companies to track their users from PC to mobile these carry in their hands and, finally, to the shops, cinemas and pizzerias where they spend their money. Also depend on how consumers (and planners in government regulations) that control will react to each of their movements.
Facebook is already experimenting with ways to use what you know about your users to display ads when they use other mobile applications. Google can link what a user logged into the computer and make your phone to show someone a mobile ad based on what you’ve searched for a home computer, for example.
In addition, Nielsen found that only one in five smartphone users described the ads on cell phones as “acceptable”.
Today, almost half of Americans own a smartphone, according to comScore (meaning a surprisingly rapid adoption since Apple introduced the iPhone just five years ago). The amount of time that people spend on their mobile Internet browsing, using apps, playing games and music has more than doubled in the past two years, to 82 minutes per day, according to eMarketer, the time spent online from a computer will grow only 3.6 percent this year.
“What has surprised people was the acceleration of the many things you can do with a smartphone,” said David B. Yoffie, a professor at Harvard Business School who studies the technology sector.
“The Web was launched in 1993, 1994,” he added. “Not too many changes occurred during a decade and a half. Revolution of smartphones began half a decade ago. Due to the existence of the Internet, the phone is allowed to have a much greater impact in a shorter period.”
However, the mobile market offers great opportunities for these companies, according to industry analysts. That is because people reveal more about themselves by telephone in computers, from where they go to sleep and when they talk and what to buy.
Consumers may be annoyed by the intrusion of the traders in their daily lives, but the companies say that compensation might be worth, a calendar alert spontaneous, for example, that says if you’re going to be late for a meeting or coupon when you are near a store.
“We begin to live in a new reality, where the omnipresence of screens really helps users to move from intention to action much more quickly and smoothly,” said Larry Page, Google’s chief executive, told analysts the last week. “This will create a new opportunity in the field of advertising.”
Companies are addressing the challenges in different ways. Despite the disappointment over its recent earnings report, Google says it will raise 8 billion dollars of your ads, and mobile media applications in the next year and a half billion devices enabled with its mobile operating system, Android. Google gets most of the dollars that come from mobile advertising.
The firm is offering location-based ads, such as T-Mobile campaign that sent users to advertisements when they were close to the shops. Some mobile ads and make more money than PC ads, said Google chief financial officer Patrick Pichette.
But one of the biggest challenges for Google is to track if people make a purchase after seeing a mobile ad. Unlike what happens in online mode, where Google knows if someone buys a camera after searching online, the company does not know if someone searches for a Thai restaurant close by and then eat there. That is why we are trying to keep people in the physical world, with services like Wallet (Wallet, in Spanish) for payments and Offers (offers, in Spanish) for coupons. On the other hand, Facebook tries to use what you know about your users billion to deliver ads that download other applications on their phones. For example, gas mark pointing to the men’s market in Los Angeles who is a fan of the basketball team, the Lakers could not show ads only when connected to a mobile application for Facebook, but also in other applications.
“We believe that mobile ads outside of Facebook is another great way to show people discover relevant ads and new applications,” the company said in response to a question sent by e-mail.
Not wanting to see from the outside how people leave computers and switches for its smartphones, Microsoft will present on Friday a version of its Windows software designed for touchscreen devices and a new tablet, called Surface.
But Microsoft executives told analysts last week that the slowdown of computer technology was due to factors other mobile factor, as the difficult economic conditions and companies to buy software waited until the arrival of its newest software , Windows 8.
Microsoft’s chief executive, Steven A. Ballmer said that Windows 8 is “the beginning of a new era at Microsoft”.
Intel is making chips catch up to more than two dozen smartphones and tablets coming to market.The shift to the “mobile world” has also created a new market for Intel chips are in their large servers that drive the cloud, which stores most of the mobile data.
“As the market for smartphones and tablets evolved, the company historically had no presence,” said Jon Carvill, who is a spokesman for Intel. “This year, that started to change.”
For other technology companies, the mobile market has been a blessing from the start. Apple became the most valuable company in the U.S. with sales of the iPhone and the iPad. Recently, Apple built its own mobile maps to replace Google Maps on the iPhone, in part because he wanted to keep the valuable information on searching user location for himself and away from your competitor.
Nvidia and Qualcomm produce processors for mobile devices. Amazon and eBay make sales, even on small screens. And mobile phone owners have realized that some services (like Zillow for real estate, Yelp for local businesses and OpenTable for restaurant reservations) are better phones than computers, and the gains have together.
For investors and others seeking to solve the riddle of how to make money with mobile users, Marc Andreessen, a venture capitalist, praised the virtues of the phone was this: “We will know a lot about people.”