COVID-19

Newzoo forecasts 2020 global games industry will reach $159 billion

Posted by | console gaming, coronavirus, COVID-19, Extra Crunch, Gaming, hardware, Market Analysis, Mobile, PC Gaming, playstation, Social, TC, xbox | No Comments

Games and esports analytics firm Newzoo released its highly cited annual report on the size and state of the video gaming industry yesterday. The firm is predicting 2020 global game industry revenue from consumers of $159.3 billion, a 9.3% increase year-over-year. Newzoo predicts the market will surpass $200 billion by the end of 2023.

Importantly, the data excludes in-game advertising revenue (which surged +59% during COVID-19 lockdowns, according to Unity) and the market of gaming digital assets traded between consumers. Advertising within games is a meaningful source of revenue for many mobile gaming companies. In-game ads in just the U.S. drove roughly $3 billion in industry revenue last year, according to eMarketer.

To compare with gaming, the global markets for other media and entertainment formats are:

Counting gamers

Of 7.8 billion people on the planet, 4.2 billion (53.6%) of whom have internet connectivity, 2.69 billion will play video games this year, and Newzoo predicts that number to reach three billion in 2023. It broke down the current geographic distribution of gamers as:

  • 1,447 million (54%) in Asia-Pacific
  • 386 million (14%) in Europe
  • 377 million (14%) in Middle East & Africa
  • 266 million (10%) in Latin America
  • 210 million (8%) in North America

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Fandango adds new features to highlight health precautions and distancing in movie theaters

Posted by | Apps, coronavirus, COVID-19, Fandango, Health, Media, Mobile, movie theaters | No Comments

As movie theaters reopen across the United States and the world, there are lingering questions about what kinds of measures those theaters will be taking to keep staff and moviegoers safe in the midst of the ongoing COVID-19 pandemic.

These concerns were illustrated last week, when AMC CEO Adam Aron said in an interview that the theater chain would not be requiring that patrons wear masks except in locations where they’re legally required to do so — because the company “did not want to be drawn into a political controversy.” Naturally, those comments prompted a controversy of their own, leading AMC to reverse its decision.

So it makes sense for NBCUniversal-owned movie ticketing app Fandango to highlight the different safety measures that theaters are taking.

It’s useful from an informational perspective, so that moviegoers understand and prepare for the experience in theaters, and perhaps choose theaters based on how serious they seem about safety. But it’s also a savvy marketing move, as those theaters will need to convince moviegoers that it’s safe to return.

Fandango social distance seating

Image Credits: Fandango

The new features include what Fandango is pitching as a “one-stop shop” to view the safety measures announced by more than 100 theater chains, with information about auditorium occupancy, social distance seating, mask/protective equipment policies, enhanced cleaning measures and special concession arrangements. There will also be instructional videos, social distance seating maps and a way to search for reopened theaters by location.

Because movie theaters have been closed for the past few months, Fandango also says it will be extending for another 60 days expired rewards from its Fandango VIP+ loyalty programs.

“We are working closely with our friends in exhibition to help get their ticketing back online and film fans back in seats with peace of mind,” said Melissa Heller, Fandango’s vice president of domestic ticketing, in a statement. “In addition to our new product features, Fandango’s mobile ticketing will be an added benefit, helping moviegoers and cinema employees reduce the number of contact points at the box office and throughout the theater.”

Update: In response to my question about whether moviegoers should feel safe going back to theaters, the company sent me the following statement from Fandango managing editor Erik Davis:

Let’s face it, there’s nothing like watching a movie on the big screen, and some movies like ‘Tenet’ and ‘Mulan’ beg to be seen on the biggest screen available, so there’s definitely a demand. Moviegoing decisions are personal: which movie, which format, which theater are you going to see it in. And now with health & safety protocols different for each state, county or theater chain, it’s useful to know what the theaters are offering before you go. Fandango is gathering all the info in one place to help fans return to the movies with peace of mind, and at the right time that is best for them.

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Why the Olympics should add esports

Posted by | astralis, baseball, Column, coronavirus, COVID-19, esports, Gaming, Goldman Sachs, international olympic committee, league of legends, Media, mlb, Olympic Games, olympics, Opinion, Sports, United States, video gaming | No Comments
Brandon Byrne
Contributor

Brandon Byrne is the CEO and co-founder of Opera Event, a technology platform that connects content creators, teams and sponsors to one another programmatically and at scale. He was previously the CFO of Team Liquid and VP of Finance and Administration at Curse.

I recently sat on a panel for gaming website Pocket Gamer that was focused on esports and the Olympics. We were debating whether esports were filling the gap in sporting events, including the Olympic games, which have been paused due to the COVID-19 pandemic.

It was an interesting conversation that started out like most esports panels. The only difference here is that instead of the typical question, “When will esports catch up to traditional sports?” it was, “Will esports become mainstream enough to make it into the Olympics?” A slightly different question, but the same sentiment: The international games are one of televised sports’ marquee events, and esports companies hope to earn a seat at the grown-up’s table.

In truth, the Olympics have been dropping in ratings relatively steadily in the U.S. for a long time. The only Olympic games that scored in the top five ratings going back to 1992 were the Salt Lake City Winter Olympics, presumably because they were held in the United States. Overall, viewership has been declining in recent years and the games don’t hold the prestige they once did.

Additionally, audiences are slowly becoming worth less and less to advertisers because the age of the average viewer is rising rapidly, a trend we are seeing in almost all traditional sports.

I doubt it would surprise anyone to learn that the average age of almost all traditional sports viewership skews older than esports’ audience. Even then, I think the actual data will be quite surprising. Only one professional sport (women’s tennis) actually saw its average viewers age come down in the last decade or so. Even in that context, the average age of a Women’s Tennis Association home spectator is 55 years old.

The average age of esports viewership looks to be around 26 years old. Think about that from a marketer’s perspective. Traditional sports are just missing young people, by a wide margin.

Where are the kids?

But there are more factors at play than just a lack of interest from millennials and Gen Z driving this trend: There’s also a question of access.

The IOC made the decision in recent years to stream the Olympics (the way most younger people consume content), but it capped the ability to watch online to 30 minutes if viewers didn’t sign in with their cable company (a relationship many millennials don’t have) to continue watching.

Additionally, the IOC made the laughable decision to “ban” GIFs with the press covering the event, which qualifies as one of the more stupid things a governing body has ever tried to do. First, it won’t work. Secondly, and more to the point, it demonstrates how out of touch the IOC is with the ways in which media has evolved in the last 20 years.

However, unlike the Olympics, where no corporation owns the rights to volleyball or the pole vault, all esports companies own the IP associated with the game itself. That means, by default, the IOC would not have carte blanche when making decisions about how to represent the games, programming, licensing rights and other factors it has enjoyed for a long time.

Finally, it’s worth noting that the IOC doesn’t like the idea of “violent” games being added to the Olympic roster. It would prefer to see current sports transformed into virtual competitions. But anyone who knows anything about esports understands that this isn’t how esports works. Before a game ascends to esports royalty, it needs to be a good game. If nobody plays it, it’s unlikely anyone will want to watch it.

Secondly, it has be digestible as a viewing experience. World of Warcraft Arena is a game that draws a lot of players, but it’s almost impossible to know what is going on unless you’re an expert at the game or you have a godly shoutcaster who can translate the on-screen action. You can’t make track and field an esport and hope audiences will want to watch.

The IOC Solution

The IOC has taken steps to try and stave off declining youth viewership trends by adopting sports considered “young” in the past few years. Five sports recently added to the Olympic games include:

  • Sport climbing
  • Surfing
  • Skateboarding
  • Karate
  • Baseball/softball

The baseball/softball addition notwithstanding, I think you would have to live under a rock if you thought that competitive sport climbing held a candle to Fortnite or League of Legends in terms of generating youth interest. Frankly, this seems like an idea that came from an old person trying to find a way to “get the kids back.”


To the IOC’s credit, it has begun to hold panels and conferences with esports experts and game publishers, but the deals that will come from these will look REALLY different than what they are used to. It seems to me that we have a long way to go here.

For my part of the panel, I argued that the Olympics need esports much more than esports need the Olympics. Media companies are only going to overpay for broadcasting rights for traditional sports for so long. At some point, someone is going to notice that the “inside the demo” group isn’t there and move on.

The thing that esports CAN get from the Olympics is understanding a better way to monetize its audience, something that the Olympics do well and esports doesn’t do well right now. A report from Goldman Sachs shows the audience size and monetization based on that audience, showing that esports dramatically underindex on monetization relative to their more established sports league equivalents. It is clear that esports is immature from a monetization perspective and, while the Olympics aren’t on this chart, I would assume that it punches WAY above its weight, much like MLB does, trading on its reputation more than on actual results these days.

The IOC should act fast, though. It won’t be long until esports figures this whole thing out and once they do, the Olympic games won’t have anything to offer this emerging media powerhouse.

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UK gives up on centralized coronavirus contacts-tracing app — will ‘likely’ switch to model backed by Apple and Google

Posted by | Apple, apple inc, Apps, Bluetooth, contacts tracing, coronavirus, COVID-19, Denmark, Europe, european union, Germany, Google, Health, ireland, Italy, Matt Hancock, Mobile, mobile app, NHS, NHS COVID-19, northern ireland, privacy, smartphone, smartphones, switzerland, United Kingdom | No Comments

The UK has given up building a centralized coronavirus contacts-tracing app and will instead switch to a decentralized app architecture, the BBC has reported. This suggests its any future app will be capable of plugging into the joint ‘exposure notification’ API which has been developed in recent weeks by Apple and Google.

The UK’s decision to abandon a bespoke app architecture comes more than a month after ministers had been reported to be eyeing such a switch. They went on to award a contract to an IT supplier to develop a decentralized tracing app in parallel as a backup — while continuing to test the centralized app, which is called NHS COVID-19.

At the same time, a number of European countries have now successfully launched contracts-tracing apps with a decentralized app architecture that’s able to plug into the ‘Gapple’ API — including Denmark, Germany, Italy, Latvia and Switzerland. Several more such apps remain in testing. While EU Member States just agreed on a technical framework to enable cross-border interoperability of apps based on the same architecture.

Germany — which launched the decentralized ‘Corona Warning App’ this week — announced its software had been downloaded 6.5M times in the first 24 hours. The country had initially appeared to favor a centralized approach but switched to a decentralized model back in April in the face of pushback from privacy and security experts.

The UK’s NHS COVID-19 app, meanwhile, has not progressed past field tests, after facing a plethora of technical barriers and privacy challenges — as a direct consequence of the government’s decision to opt for a proprietary system which uploads proximity data to a central server, rather than processing exposure notifications locally on device.

Apple and Google’s API, which is being used by all Europe’s decentralized apps, does not support centralized app architectures — meaning the UK app faced technical hurdles related to accessing Bluetooth in the background. The centralized choice also raised big questions around cross-border interoperability, as we’ve explained before. Questions had also been raised over the risk of mission creep and a lack of transparency and legal certainty over what would be done with people’s data.

So the UK’s move to abandon the approach and adopt a decentralized model is hardly surprising — although the time it’s taken the government to arrive at the obvious conclusion does raise some major questions over its competence at handling technology projects.

Michael Veale, a lecturer in digital rights and regulation at UCL — who has been involved in the development of the DP3T decentralized contacts-tracing standard, which influenced Apple and Google’s choice of API — welcomed the UK’s decision to ditch a centralized app architecture but questioned why the government has wasted so much time.

“This is a welcome, if a heavily and unnecessarily delayed, move by NHSX,” Veale told TechCrunch. “The Google -Apple system in a way is home-grown: Originating with research at a large consortium of universities led by Switzerland and including UCL in the UK. NHSX has no end of options and no reasonable excuse to not get the app out quickly now. Germany and Switzerland both have high quality open source code that can be easily adapted. The NHS England app will now be compatible with Northern Ireland, the Republic of Ireland, and also the many destinations for holidaymakers in and out of the UK.”

Perhaps unsurprisingly, UK ministers are now heavily de-emphasizing the importance of having an app in the fight against the coronavirus at all.

The Department for Health and Social Care’s, Lord Bethell, told the Science and Technology Committee yesterday the app will not now be ready until the winter. “We’re seeking to get something going for the winter, but it isn’t a priority for us,” he said.

Yet the centralized version of the NHS COVID-19 app has been in testing in a limited geographical pilot on the Isle of Wight since early May — and up until the middle of last month health minister, Matt Hancock, had said it would be rolled out nationally in mid May.

Of course that timeframe came and went without launch. And now the prospect of the UK having an app at all is being booted right into the back end of the year.

Compare and contrast that with government messaging at its daily coronavirus briefings back in May — when Hancock made “download the app” one of the key slogans — and the word ‘omnishambles‘ springs to mind…

NHSX relayed our request for comment on the switch to a decentralized system and the new timeframe for an app launch to the Department of Health and Social Care (DHSC) — but the department had not responded to us at the time of publication.

Earlier this week the BBC reported that a former Apple executive, Simon Thompson, was taking charge of the delayed app project — while the two lead managers, the NHSX’s Matthew Gould and Geraint Lewis — were reported to be stepping back.

Back in April, Gould told the Science and Technology Committee the app would “technically” be ready to launch in 2-3 weeks’ time, though he also said any national launch would depend on the preparedness of a wider government program of coronavirus testing and manual contacts tracing. He also emphasized the need for a major PR campaign to educate the public on downloading and using the app.

Government briefings to the press today have included suggestions that app testers on the Isle of Wight told it they were not comfortable receiving COVID-19 notifications via text message — and that the human touch of a phone call is preferred.

However none of the European countries that have already deployed contacts-tracing apps has promoted the software as a one-stop panacea for tackling COVID-19. Rather tracing apps are intended to supplement manual contacts-tracing methods — the latter involving the use of trained humans making phone calls to people who have been diagnosed with COVID-19 to ask who they might have been in contact with over the infectious period.

Even with major resource put into manual contacts-tracing, apps — which use Bluetooth signals to estimate proximity between smartphone users in order to calculate virus expose risk — could still play an important role by, for example, being able to trace strangers who are sat near an infected person on public transport.

Update: The DHSC has now issued a statement addressing reports of the switch of app architecture for the NHS COVID-19 app — in which it confirms, in between reams of blame-shifting spin, that it’s testing a new app that is able to plug into the Apple and Google API — and which it says it may go on to launch nationally, but without providing any time frame.

It also claims it’s working with Apple and Google to try to enhance how their technology estimates the distance between smartphone users.

“Through the systematic testing, a number of technical challenges were identified — including the reliability of detecting contacts on specific operating systems — which cannot be resolved in isolation with the app in its current form,” DHSC writes of the centralized NHS COVID-19 app.

“While it does not yet present a viable solution, at this stage an app based on the Google / Apple API appears most likely to address some of the specific limitations identified through our field testing.  However, there is still more work to do on the Google / Apple solution which does not currently estimate distance in the way required.”

Based on this, the focus of work will shift from the current app design and to work instead with Google and Apple to understand how using their solution can meet the specific needs of the public,” it adds. 

We reached out to Apple and Google for comment. Apple declined to comment.

According to one source, the UK has been pressing for the tech giants’ API to include device model and RSSI info alongside the ephemeral IDs which devices that come into proximity exchange with each other — presumably to try to improve distance calculations via a better understanding of the specific hardware involved.

However introducing additional, fixed pieces of device-linked data would have the effect of undermining the privacy protections baked into the decentralized system — which uses ephemeral, rotating IDs in order to prevent third party tracking of app users. Any fixed data-points being exchanged would risk unpicking the whole anti-tracking approach.

Norway, another European country which opted for a centralized approach for coronavirus contacts tracing — but got an app launched in mid April — made the decision to suspend its operation this week, after an intervention by the national privacy watchdog. In that case the app was collecting both GPS and Bluetooth —  posing a massive privacy risk. The watchdog warned the public health agency the tool was no longer a proportionate intervention — owing to what are now low levels of coronavirus risk in the country.

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Superhuman’s Rahul Vohra says recession is the ‘perfect time’ to be aggressive for well-capitalized startups

Posted by | coronavirus, COVID-19, ECL, email, Enterprise, Extra Crunch, Extra Crunch Live, Mobile, Rahul Vohra, Startups, superhuman, Work | No Comments

Email is one of those things that no one likes but that we’re all forced to use. Superhuman, founded by Rahul Vohra, aims to help everyone get to inbox zero.

Launched in 2017, Superhuman charges $30 per month and is still in invite-only mode with more than 275,000 people on the waitlist. That’s by design, Vohra told us earlier this week on Extra Crunch Live.

“I think a lot of folks misunderstand the nature of our waitlist,” he said. “They assume it’s some kind of FOMO-generating technique or some kind of false scarcity. Nothing could be further from the truth. The real reason we have the waitlist is that I want everyone who uses Superhuman to be deliriously happy with their experience.”

Today, the app is only available for desktop and iOS. Superhuman started with iOS because most premium users have iPhones, Vohra said. Still, many users have Android, so Superhuman’s waitlist consists mostly of Android users.

“We don’t think that if we onboard them they’d have the best experience with Superhuman because email really is an ecosystem product,” he said. “You do it just as much on the go as you do from your laptop. There’s a lot of reasons like that. So if you’re a person who identifies that as a must-have, well, we’ll take in the survey, we’ll learn about you so we know when to reach out to you. Then when we have those things built or integrated, we’ll reach out.”

We also chatted about his obsession with email, determining pricing for a premium product, the impact of COVID-19, diversity in tech in light of the police killing of George Floyd and so much more.

Throughout the conversation, Vohra also offered up some good practical advice for founders. Here are some highlights from the conversation.

On competition from Hey, the latest buzzy email app

Yeah, I’m not at all worried. I used to get worried about this. You know, 10 years ago, even as recently as five years ago, I would get worried about competitors. But I think Paul Graham has really, really great advice on this. I think he says pretty much verbatim: Startups don’t kill other startups. Competition generally doesn’t kill the startup. Other things do, like running out of money being the biggest one, or lack of momentum or lack of motivation or co-founder feuds; these are all really dangerous things.

Competition from other startups generally isn’t the thing that gets you and you know, props to the Basecamp team and everything they’ve done with Hey. It’s really impressive. I think it’s for an entirely different demographic than Superhuman is for.

Superhuman is for the person for whom essentially email is work and work is email. Our users kind of almost personally identify with their email inbox, and they’re coming from Gmail or G Suite. Typically it’s overflowing so they often receive hundreds if not thousands of emails a day, and they send off 100 emails a day. Superhuman is for high-volume email for whom email really matters. Power users, essentially, though power users isn’t quite the right articulation. What I actually say is prosumers because there’s a lot of people who come to us at Superhuman and they’re not yet power users of email, but they know they need to be.

That’s what I would call a prosumer — someone who really wants to be brilliant at doing email. Now Hey doesn’t seem to be designed for that target market. It doesn’t seem to be designed for high-volume emailers or prosumers or power users.

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How COVID-19 transformed the way Americans spend online

Posted by | Column, coronavirus, COVID-19, e-commerce, eCommerce, Extra Crunch, Gaming, growth marketing, Market Analysis, Media, mobile web, online shopping, payments, retail, shopping, Social, social commerce, Startups, TC | No Comments
Ethan Smith
Contributor

Ethan Smith is founder and CEO of Graphite, an SEO and growth marketing agency based in San Francisco. Ethan has served as a strategic advisor to Ticketmaster, MasterClass, Thumbtack and Honey.

COVID-19 has transformed the way Americans use their phones and the way they spend their time and money online. These shifts present both a number of challenges and a raft of opportunities for savvy growth marketers.

We’ve seen COVID-19 affect a number of verticals. A number of industries have taken a hit (like music streaming and sports), while some are expanding due to the pandemic (groceries, media, video gaming). Others have found distinctive ways to adjust the way they position and sell their product, allowing them to take advantage of changes in buyer behavior.

The key to being able to read and react to changes in this still-tumultuous time and tailoring your growth marketing accordingly is to understand how public sentiment is reflected in new purchasing behaviors. Here’s an overview of the most important trends we’re seeing that will allow you to adjust your growth marketing effectively.

By the numbers: A sheltering-in-place economy

Virtually all of the data we’ve seen shows a marked difference in buyer behavior following the WHO’s declaration of a pandemic on March 11, 2020. With consumers encouraged to stay home to deter the spread of COVID-19, it’s no surprise that the biggest change is the spike in online activity.

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IoT solutions are enabling physical distancing

Posted by | 3 D, ambient intelligence, artificial intelligence, Column, coronavirus, COVID-19, e-sports, Education, Entertainment, Extra Crunch, facial recognition, Gaming, Health, IoT, Market Analysis, Sports, Startups, technology, telecommuting | No Comments
Tyler Cracraft
Contributor

Tyler Cracraft is an electronic engineer turned solution architect at Advantech who has more than a decade of experience working in the electronics technology industry.

If you’re a business owner or investor and are wondering about the long-term impacts of the COVID-19 pandemic on the business world, you’re not alone.

Today’s business leaders have been plunged into the deep end of telecommuting with little notice, and the way we do business has been impacted at almost every level. Travel is restricted, meetings are virtual and delivery of goods and even raw materials is being delayed. While some industries that depend on large gatherings are seeing extremely difficult challenges due to the pandemic, others such as the tech industry, see the opportunity and responsibility for innovation and growth.

As many states begin phased reopening, companies are trying to determine what the workplace and business environment will look like in a post-quarantine world. The first obvious step is the integration of personal protective equipment (PPE). Sanitization and face masks will become required and nonessential face-to-face meetings will be a thing of the past, along with shaking hands.

Additionally, relationship-driven careers such as sales and recruiting will have to find new ways to connect to be successful. Physical distancing rules will have to be established, which may include employees coming in alternate days while telecommuting the other days of the week to keep offices at reduced capacity. Large offices of 10 or more may implement thermographic camera technology for fever screening or other real-time technology-based health screenings.

One thing is for sure: IoT devices that enable physical distancing will become an integral part of reopening businesses, facilitating sales connections and embracing a different way of living.

Solutions for physical distancing

There are a variety of IoT devices available that can help business leaders successfully implement physical distancing in their offices. Thermographic camera technology coupled with facial recognition can create a baseline for each employee and then assist in determining if an employee has a temperature outside of their norm. Other remote health monitoring may also take place with healthcare providers, helping employees determine on a daily basis if they are well enough to go into work.

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This Week in Apps: Android 11 beta, Snapchat’s makeover, Apple’s WWDC20 plans

Posted by | Android, Apple, Apps, coronavirus, COVID-19, Extra Crunch, Google, Snap, Twitter | No Comments

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, we’re looking at the mobile news from the events that didn’t happen this year because of the coronavirus pandemic. That includes the launch of Android 11 beta, which would have normally arrived during Google I/O, along with all the new Android developer tools. Snap also held its partner summit this week, where it announced a number of new Snapchat features, new partner relationships, and its plans for its AR ecosystem.

Not to be left out, Apple stole a little attention this week with its reveal of the WWDC20 schedule. Like many others, Apple’s conference is going virtual for the first time. It’s even redesigning its forums to aid with Apple engineer-developer interactions.

This week in app trends, we examine data from new reports on COVID’s impact on home improvement apps and hypercasual gaming.

Headlines

Android 11 beta launches along with new developer tools

After a series of delays and the cancellation of Google I/O, the Android 11 beta finally launched this week. This next major version of the Android OS is focused around three themes, says Google: People, Controls and Privacy.

On the People side, Android 11 gives conversation notifications a dedicated section at the top of the shade, offers a Bubbles API for messaging apps, improves Voice Access, adds new emoji and more. New consolidated keyboard suggestions allow Autofill apps and Input Method Editors (e.g., password managers and third-party keyboards), to now securely offer context-specific entries in the suggestion strip.

 

New device controls make it easier for users to access and control connected/smart home devices with a long press of the power button or access payment options. New media controls in an upcoming beta release will make it easier to switch the output device for audio or video content.

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Is Zoom the next Android or the next BlackBerry?

Posted by | Android, Apps, BlackBerry, blindtype, bumptop, Column, coronavirus, COVID-19, Enterprise, Extra Crunch, iPhone, Market Analysis, research-in-motion, smartphones, Startups, Steve Jobs, Video, video conferencing, WebEX, zoom | No Comments
Gaurav Jain
Contributor

Gaurav Jain is one of the founders of Afore Capital, a $124 million fund focused on pre-seed. He was also an early product manager for Android.

In business, there’s nothing so valuable as having the right product at the right time. Just ask Zoom, the hot cloud-based video conferencing platform experiencing explosive growth thanks to its sudden relevance in the age of sheltering in place.

Having worked at BlackBerry in its heyday in the early 2000s, I see a lot of parallels to what Zoom is going through right now. As Zooming into a video meeting or a classroom is today, so too was pulling out your BlackBerry to fire off an email or check your stocks circa 2002. Like Zoom, the company then known as Research in Motion had the right product for enterprise users that increasingly wanted to do business on the go.

Of course, BlackBerry’s story didn’t have a happy ending.

From 1999 to 2007, BlackBerry seemed totally unstoppable. But then Steve Jobs announced the iPhone, Google launched Android and all of the chinks in the BlackBerry armor started coming undone, one by one. How can Zoom avoid the same fate?

As someone who was at both BlackBerry and Android during their heydays, my biggest takeaway is that product experience trumps everything else. It’s more important than security (an issue Zoom is getting blasted about right now), what CIOs want, your user install base and the larger brand identity.

When the iPhone was released, many people within BlackBerry rightly pointed out that we had a technical leg up on Apple in many areas important to business and enterprise users (not to mention the physical keyboard for quickly cranking out emails)… but how much did that advantage matter in the end? If there is serious market pull, the rest eventually gets figured out… a lesson I learned from my time at BlackBerry that I was lucky enough to be able to immediately apply when I joined Google to work on Android.

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Global smartphone sales plummeted 20% in Q1, thanks to COVID-19

Posted by | Apple, coronavirus, COVID-19, gartner, hardware, huawei, Mobile, oppo, Samsung, smartphones | No Comments

More dismal numbers confirm what we already knew: Q1 2020 was real rough for an already struggling smartphone category. Gartner’s latest report puts the global market at a 20.2% slide versus the same time last year, thanks in large part to fallout from the COVID-19 pandemic.

Every single one of the global top-five manufactures saw large declines for the quarter, save for Xiaomi, which saw a slight uptick of 1.4%. The Chinese handset maker got a surprise bump, courtesy of international sales. Samsung and Huawei and Oppo all saw double-digit drop-offs at 22.7%, 27.3% and 19.1%, while Apple declined 8.2%. Other companies combined for a sizable 24.2% loss for Q1.

The reasons are ones we’ve gone over several times before, nearly all pertaining to the global pandemic. Chief among them are global stay at home orders and general economic uncertainly. Issues with the global supply chain have no doubt been a factor, as well, as Asia was the first to get hit with the virus.

All of this comes in addition to an already plateauing/declining smartphone market. Analysts had expected that the arrival of 5G would help stem the tide a bit — but, well, some stuff happened in there. Notably, Apple’s slide wasn’t as bad as it might have been thanks to a strong start to the year.

“If COVID-19 did not happen, the vendor would have likely seen its iPhone sales reached record level in the quarter. Supply chain disruptions and declining consumer spending put a halt to this positive trend in February,” Gartner’s Annette Zimmermann said in a release. “Apple’s ability to serve clients via its online stores and its production returning to near normal levels at the end of March helped recover some of the early positive momentum.”

Overall, I suspect that recovery won’t be instantaneous for the market. The future of COVID-19 still feels largely uncertain as countries have begun the process of reopening, and a pricey investment still may not be in the cards for many who are struggling to make ends meet. 

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