“Intel has the wrong business model… People in the mobile phone architecture don’t buy microprocessors, so if you sell microprocessors, you have the wrong model. They license them… it’s not Intel versus ARM, it’s Intel versus every single semiconductor company in the world.”

Two years ago, an article on techradar predicts how smartphone and tablets are going to takeover market share from traditional PCs and laptops, and it is not the only commentary on the future of laptops, smartphones and tablets. “For the first full year since 2001, personal computer sales are projected to decline in 2012”, said on gigaom in 2012, “The PC certainly isn’t dead, but it is dying a slow painful death.”

 Why can’t intel, as well as any other giants in desktop market, step into the smartphone market?

  In fact they tried, Windows Phone and few intel-powered smartphone such as Lenovo would be good examples for that. However, apparently they are not gaining market share as considerably as other smartphone giants such as Samsung and Apple, which have recently shifted from Laptops to mainly smartphone production.

  Throughout Porter’s Five Forces Analysis, by looking at the smartphone industry as a whole, there would be fellowing characteristics:

• Threat of New Entrant:  since we are looking at the smartphone market as a whole, there would not be much threat from new entrant since smartphones have already defined themselves by being “smart” and portable.
• Threat of Substitute Product or Services: there are a few, such as tablet PCs, but not that many. In addition, there are trends that can prove the merge of tablets and smartphones.
• Bargaining Power of Suppliers: would not be so important since there are still many manufacturers of semiconductors that are capable of producing those SOCs (System on Chips).
• Bargaining Power of Customers: since the growth of smartphone sales are considerably high, there are more buyer power because consumers can easily switch between brands that have similar models and functions (except for Apple), which help stabilize the price of the overall market as well.
• Intensity of Competitive Rivalry: there would be a lot of competition within the market, since there are millions of brands targeting at different consumer segments, as well as different operating system. Hence, large competition within the market help stabilize the pricing of product as well.

Since the smartphone market is full of internal competition and many options for chip manufacturing. Intel, as the giant manufacturer of PC central chips and SSDs for ultrabooks probably as the wrong business model in the smartphone market. Not many brands in this market would rely much on the intel microprocessor, and it is definitely not easy for a new operating system, such as Microsoft’s Windows Phone, to step into the market as well.

  But why is smartphones taking over the traditional laptop industry?

  As a consumer, it is clear that everyone wants to own a portable device that can easily fit into your pocket, but at the same time being able to do the basic but important daily tasks such as making schedules, internet surfing, reading, and listening to music. Laptops, on the other hand, are very important for those professions who seek for portable but powerful working stations. But by how much market share of the total laptop and smartphone market are those “professions” taking, not mentioning those of whom that really prefer desktop way more than laptops? Hence it is true that the traditional laptop industry are facing the situation of being squeezed by two ends on the scale. On one hand would be the threat from the rapidly growth of smartphones, since they are getting “smarter” with a reasonable pricing. On the other hand, they are also facing the pressure from desktops which are much powerful and support much more customization than laptop does.

Where are we heading, smartphones? I believe there would eventually be one day that there would be only one device in your hand that is easy to carry, has all the functions you need everyday, as well as capable of doing professional work. And that, would be the future of smartphones, tablets, and laptops.

References:

http://www.techradar.com/news/mobile-computing/how-smartphones-and-tablets-are-taking-over-942724

http://tech.ca.msn.com/how-to/article.aspx?cp-documentid=24513184

http://www.idc.com/about/viewpressrelease.jsp?containerId=prUS22689111&sectionId=null&elementId=null&pageType=SYNOPSIS

People around the world, especially in Asia has worshipped the power of gold for thousands of years. However, like any other rarities, gold has nothing special but its colour. But clearly, for thousands of years, gold, as well as its colour, has become more related to social “showmanship” rather than its original value.

  This article, however, will NOT be anything about the history of gold, nor will it be any tribal or religious view on gold itself. But it is truly about the power of gold(en colour), and people’s craziness about the colour “gold” in a modern, technological life.

  Here’s a Question: Would Colours Really Matter While Choosing an Electronic Product?

  The answer for that question, is definitely a yes, since the world’s biggest brand, Apple Inc, has proven it through its severe shortage of supply in just few days after it’s launch of the new flagship mobile phone model – iPhone 5s.

 This is actually the first time on Apple’s history, that the company decided to release more than one phone models at one time, and also the first time that iPhone(s) have come into different colours. Black (Space Grey), Silver, and Gold (more likely to be called Champagne) for iPhone 5s, and five different colours about its plastic “cheaper” model iPhone 5c.

  But why is it so different from any other launches Apple have had before? Because you cannot find any Gold iPhone 5s available right now, I mean, not in any carriers or official retail stores. They still have those on eBay, but the price will be $1,800 or up!

  Here are some statistics from Business Insider:

• O2, the major European carrier, has zero gold iPhones.
• Verizon on Wall Street has zero gold iPhones.
• The entire continent of Australia has zero gold iPhones.
• Apple’s flagship store in San Francisco had only 20 gold iPhones.
• There has been a vast under-estimation of Asian demand for gold iPhones, where the device is also sold out.

What is happening to Apple, and to its supply of product? Is it really like what the company said, “Underestimated the Demand from Asia“? Well, partly true, since people from not only Asia but all around the world are super crazy about the new “shiny golden iPhone”. But would the world’s biggest brand, as well as world cutting-edge marketing research department, really “underestimate” its consumers’ demand? Again, according to Business Insider, and basic demand and supply model, the price of the basic material for iPhone 5s, aluminum, has been declining as Apple planned for its iPhone 5s supply, which means there would be no reason for Apple not to purchase enough amount of raw materials for making iPhone 5s. However, Apple’s second phone product this year, the polycarbonate (plastic) iPhone 5c, has never been sold out, even though it has started the online ordering way before it was actually sold in retail stores. However, the price for polycarbonate, contradictorily, are rising when Apple manages it iPhone 5c supplies.  

  The possible plan Apple is making, from my own opinion, is to grab every consumer’s attention on the newly released iPhone 5s, especially the golden ones, by introducing numerous colours to both of its product. Just like other rarities like diamonds and rubies, people will be extremely interested in something that is very hard to obtain, and will be willing to pay much higher price than it is actually worth. The “cheaper” iPhone 5c, will be a nice tool to grab consumer’s attention through its different selection of colours and, on the other hand, to focus everyone’s attention on the hard-to-get iPhone 5s, since consumers wouldn’t care that much on a fully in stock and cheaper item compared to the shiny and rare Golden iPhone’s Flagship.   “That’s what is going on with the gold iPhone. You can’t have one. And that’s why you want one.” Apple’s marketing people are not dummies. They are making its golden iPhone more like a sign of social status rather than an electronic cellphone, and apparently last week the gold iPhone has “divided the world into the haves and have-nots”.

Related Links: http://www.businessinsider.com/apples-gold-iphone-5s-shortage-2013-9#ixzz2h5vlYsCj