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Welcome!

7:30 AM - 8:00 AM Registration and Breakfast


8:00 AM - 9:20 AM IDC Analyst Presentations
9:20 AM – 10:00 AM Analyst Panel Discussion
10:00 AM - 10:30 AM Networking with IDC Analysts

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Beyond Early Adoption:
New Perspectives on Consumer Segmentation

Alicia Dowdell
Director
Computing and Consumer Primary Research

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Today’s session

ƒ Challenge of current consumer segmentations


– Where today’s models leave behind consumers

ƒ Segmentation based on attitudes


– Why segmentation still matters
– IDC’s latest global research
– Drivers of consumer segmentation

ƒ New opportunities to reach consumers


– Where and how you can better serve consumers

ƒ Q&A

© 2009 IDC Jan-09 3


CE and Consumer
Segmentation

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Traditional consumer segments shifting
as new devices are rapidly adopted

• Professionals • Families • Teens and pre-


(‘prosumers’) teens
• Retirees
• ‘Early adopters’ • Young adults or
¾ Still “late”
millenials
¾ Who else adopters?
besides affluent, ¾ “Techies”
younger males? different than
“innovators” that
came before
them?
© 2009 IDC Jan-09 5
Models based on demographics and
adoption leave questions unanswered

ƒ What happens to ‘early


adopters’ and ‘innovators’
as markets mature?

ƒ Where are the 70% ‘majority’


now – how do they act and
why?

ƒ How do consumer attitudes


impact CE adoption – what
are we missing?

ƒ What can consumers’ feelings and attitudes tell us about how


markets will diversify, thrive, or decline?

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
IDC designed research to understand
consumer attitudes and ownership
• Australia • Italy
• Belgium • Mexico
• Japan • Norway
• Brazil • Poland
• Canada • Russia
• Netherlands • China
• Saudi Arabia • Denmark
• Singapore • France
• South Korea • Germany
• Sweden • India
• Switzerland • Taiwan
• United Arab United
Emirates Kingdom

• United States • Thailand


of America

* Structured survey fielded online November– December 2008 (total N = 31,231 consumers aged 18 +)

© 2009 IDC Source:/Notes: Jan-09 7


Consumer feelings, responsibility, and
satisfaction w/CE drove analysis
ConsumerScape 360° research findings

Principal component (factor) analysis


Methods of analysis

Attitudes, responsibility, Satisfaction


& feelings (select devices, services)

2 Step Cluster Analysis

Segmentation analysis (5 consumer segments)

© 2009 IDC Jan-09 8


Consumer feelings, responsibility, and
satisfaction w/CE drove analysis
ConsumerScape 360° research findings

Principal component (factor) analysis

ƒ How do you think and feel about ƒ How likely are you to recommend
Methods of analysis

CE and technology? your brand/provider to someone


you know (family member, friend,
ƒ How do you feel about making
co-worker, etc)? (Scale of 1 - 5,
decisions about CE devices and
5 = Very likely/definitely)
services for your household?
• TV service provider
ƒ What statement best describes
how you select a new CE device • Internet service provider
for your personal/HH use? • Mobile phone services provider
ƒ Who in your HH is primarily • Brand / manufacturer of MP3
responsible for setting up, fixing player
problems and/or managing the
• Brand / manufacturer of computer
computer (including Internet)? (desktop, laptop/notebook)

© 2009 IDC Jan-09 9


Cluster analysis revealed 5 segments,
comprising ~92% of the total sample
Cluster 1: ‘Confident, experiments’ 24%
– Excited about experimenting/using new consumer electronics and technology

Cluster 2: ‘Comfortable, networks’ 17%


– Looks for advice / example of others and wait to replace than upgrade

Cluster 3: ‘Networks for CE Needs’ 21%


– Solid understanding of how to meet HH’s needs for CE, technology

Cluster 4: ‘Practical, in charge’ 21%


– Gathers/needs information before buying something new

Cluster 5: ‘Cautious, Brings Office Tech Home’ 17%


– Watches others / in person demonstration before buying new devices

© 2009 IDC Jan-09 10


Segments behaved in both expected
and surprising ways
ƒ Confident segments tended ¾ No one segment dominated by
to be younger (< 45) with workers vs. students / retirees
more men than women. / etc.
¾ Majority segments were
ƒ In contrast, “Practical” proportionate by gender and
segment included more age, and included HHs with
women (including young and without children.
women).
¾ Pervasive use of mobile
ƒ More consumers in “early devices – more consumers “on
adopter” or innovator type the go” regardless of segment.
segments maintained CE ¾ Many made recent CE
budget for 2009. purchases (TV, MP3 players,
or mobile phones /
ƒ Confident/comfortable smartphones)
segments more likely to
express optimism about ¾ Similar penetration of digital
earning potential going into TV, DVD, other CE technology
new year. (although some TV sizes
tended to be larger screens)

© 2009 IDC Jan-09 11


Level of satisfaction across services and
devices varied among segments.

TV Mobile Internet Desktop Laptop / MP3


Notebook
Confident 64% 72% 70% 58% 66% 73%

Comfortable 59% 69% 67% 66% 76% 64%

Networks 60% 70% 68% 66% 76% 68%

Practical 51% 60% 59% 67% 76% 54%

Cautious 60% 68% 68% 71% 82% 66%

ƒ Top box analysis (% consumers within segment who definitely or were


likely to recommend their provider or brand) revealed several gaps.
ƒ Understanding which consumers need what types of service – including
technical support – can improve loyalty and reduce churn.

© 2009 IDC Source: IDC, 2007 Jan-09 12


Essential guidance

ƒ Segmentation analysis revealed differences in how consumers


think and feel about technology that cut across gender, age,
and other demographic lines.
ƒ Important aspects of consumer experience to address include:
1. How they choose consumer electronics for themselves / their
household.

2. Who’s responsible for managing CEs and services (and why).

3. How confident or comfortable (or not) consumers feel about


making decisions regarding CE and services.

4. What role new technology plays in their household – and where


they look and turn for experience and information.

© 2009 IDC Jan-09 13


Next steps…
ƒ Examine segment behavior by country in ConsumerScape 360
– Continue to flesh out segment profiles

ƒ Weight data from 26 country research for use across IDC


Consumer programs
– HH profiles by CE ownership, usage of services, online behavior, etc

© 2009 IDC Jan-09 14


Questions?

adowdell@idc.com

© 2009 IDC Jan-09 15


Appendix:
Attitude questions by segment

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Which of the statements best describes how you think
and feel about consumer electronics or technology?

100%
90% 22% 16%
80%
50%
70% 45%
27%
60% 38%
50% 100%
40%
25%
30% 38%
50%
20% 38%
10% 24%
13%
0%
Practical Networks Cautious Comfortable Confident
I do not think about technology or CE much
I only change devices, technology, or services as a replacement
I am personally excited about trying new technology/like to experiment
I wait to buy anything for personal use until I have a chance to try it at school/work
I rely strongly on the advice and example of friends and family

Sample Size = 28718

© 2009 IDC Jan-09 17


In your household, how do you make decisions about
buying consumer electronics like TVs, stereos, or video
players?

100%

90%
34%
80% 42%
47%
70% 55%
72%
60%

50%

40%
66%
30% 58%
53%
45%
20%
28%
10%

0%
Practical Networks Cautious Comfortable Confident

I am the one who makes the decisions. I share responsibility for both decisions and payment.

Sample Size = 28718

© 2009 IDC Jan-09 18


How do you feel about making decisions about consumer
electronics and services for your household?

100%
17% 13%
90% 23%

80% 42%

70% 58%

60% 52%

50% 58%
83%
40%

30% 58%

20% 42%
34%

10% 18%

0%
Practical Networks Cautious Comfortable Confident

I find it a challenge. I don't always feel confident about


OK - I need and expect to get information before I am ready
Good – I understand what we need and know where and how to f
Very confident - I understand new technology and know what I
Sample Size = 28718

© 2009 IDC Jan-09 19


Which of the following statements best describes the way
you think about and buy products and services?

Confident 25% 74% 1%

Comfortable 19% 76% 5%

Cautious 15% 78% 6%

Networks 15% 81% 4%

Practical 10% 80% 9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

If I really want something I will buy it regardless of price I like to shop around for the best price
I only buy something after it goes on sale I do not usually buy things for myself

Sample Size = 28718

© 2009 IDC Jan-09 20


What statement best describes the way you select a new
electronic device for personal use or for your household?

100%

90% 16%
80% 38% 8% 43%
% of Respondents

48% 54%
70%

60%
37%
50%
29% 23%
40%

30%
17% 52% 46%
20% 39%
33%
10% 17%
0%
Practical Networks Cautious Comfortable Confident

I need to hold or handle something in person I am comfortable ordering something after reading a description
I would buy after watching a demo on TV/video I am OK if I watch another person use it first

Sample Size = 28718

© 2009 IDC Jan-09 21


Who in your household is primarily responsible for setting
up, fixing problems, or managing the computer / internet?

100%
10%
90% 19% 6%
6%
80%
18% 15%
70%

60% 10%
50% 100% 100%
88%
40%

30% 65%
54%
20%

10%

0%
Practical Networks Cautious Comfortable Confident

I do Another adult in my HH
Child (13 or older) Professional or service provider
Something else (who?) A friend or relative visits to help

Sample Size = 28718

© 2009 IDC Jan-09 22


The Coming Reality of Internet Video in
the Living Room

Greg Ireland
Research Manager
Consumer Markets: Video

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
So many possibilities…
Network-enabled Video Device Shipments (,000)

60,000

50,000

40,000
DMAs and Media Servers
30,000 DVD
HDTV
20,000

10,000

0
2007 2008 2009 2010 2011 2012

Market drivers
ƒ The Internet video success story of 2008 was Hulu

ƒ Now we have Netflix coming to devices

ƒ Cable VOD still doesn’t have the right content

This means… the coming of age of the DMA!

© 2009 IDC Jan-09 24


Whatchootalkin’ ‘bout?

ƒ These things have failed in the past!

ƒ Consumers aren’t really interested!

ƒ Other connected devices make more sense!

ƒ Traditional service providers will rule the day!

ƒ C’mon, the economy stinks!

© 2009 IDC Jan-09 25


DMAs have failed in the past

True, but…
ƒ Two buckets of DMAs in the past
– Those that connect to the PC
– Those that connect to useless content

ƒ What’s different now?


– Connectivity direct to BB content
– Content is from established content destinations
– And it’s content people want

© 2009 IDC Jan-09 26


Consumers aren’t really interested

ƒ Explaining new consumption paradigms isn’t always easy

ƒ Early implementations did little to drive interest


– Expensive devices
– No “real” content, or limited content
– No prior consumer relationship with content providers

ƒ But, consumers are watching more TV shows and movies online


– There is interest in viewing this content in the living room
– This is content that often isn’t available from cable
– New devices can build on existing and growing consumer
association with established content providers

© 2009 IDC Jan-09 27


Other connected devices make sense

But…
ƒ Connected TVs are caught in a replacement cycle dilemma

ƒ Network-enabled Blu-ray makes tons of sense, but do


consumers believe that Blu-ray itself makes sense?

ƒ Game consoles – perhaps the best positioned, but limited appeal


to non-gaming households
Meanwhile…
ƒ DMAs can be lower cost

ƒ And promoted specifically as content acquisition devices

© 2009 IDC Jan-09 28


Service providers are well positioned

But…
Will they get their act together?
ƒ Slow to move the right content onto VOD

ƒ Much of what they have is still SD

ƒ Who believes that the integration of BB video and the STB will
take place soon? Or be a viable solution?

ƒ The battle between content companies and service providers is


going to get more tense, and content companies have a lot of
leverage

© 2009 IDC Jan-09 29


Impact of the economic turmoil

First the bad news…


ƒ Cuts in innovation expected in 2009

ƒ CE focus on existing product lines

ƒ Consumer spending under pressure

But…
ƒ Home-based entertainment value proposition

ƒ Evolution of existing behavior transition

ƒ Innovative products are still emerging as leaders work to create


new consumer experiences

© 2009 IDC Jan-09 30


Playing in the sandbox

© 2009 IDC Jan-09 31


Things to consider

Future outlook
ƒ Still not a mass market opportunity

ƒ Traditional cable services aren’t going away any time soon

ƒ Pay TV providers do have much to lose, but can work to protect


themselves from the over the top threat
…but…
ƒ 2009 won’t be a lost year for consumer behavior evolution

ƒ Coming out of the recession, don’t count out those DMAs

© 2009 IDC Jan-09 32


Questions

Contact me at:

gireland@idc.com

© 2009 IDC Jan-09 33


Customer Support and The Digital Home
Are Technology Players Ready to face the Coming Storm?

Matt Davis
Program Director
Multiplay Services

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Todays Discussion

‰ The Case for Convergence


‰ The Drive for New Services
‰ The Coming Storm
‰ Customer Support and the Digital Home
‰ Essential Guidance

© 2009 IDC Jan-09 35


The Case for Convergence – Service
Provider Perspective

Voice Video

Local Consumer Voice Cable TV net subscriber growth


Revenues have fallen from has been flat at the 100 million HH
over 6% over the past year mark – with meaningful competition
emerging from IPTV and potential
AT&T and Verizon are
over the top displacement
losing a combined 2 million
disrupting existing distribution
lines each quarter
models – price pressure will
increase
Broadband Wireless

Net broadband additions Wireless voice revenues flattened


have been approximately towards the end of 2008 – signs
10 million a year in 2006 that the market has finally matured
and 2007 – they will shrink – wireless data the great hope
to about 6 million in 2008

© 2009 IDC Jan-09 36


Churn intenders – Does the Bundle Matter?

Are you planning to switch in the next 12 months?


No

No bundle – no problem
83.00%
Bundle
Plain old stasis rivals
Incumbency as a key for
81.00%
staying put Television

84.00%
Local Voice
Standalone
86.00%
However, bundling is Wireless

important, it is essential to 83.00%

profitable consumer
Broadband
ARPU and the gateway to
new service delivery
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: IDC 2008


© 2009 IDC Jan-09 37
Where will differentiation come from?

Cable
VoIP Wireless Entertainment
VOD
Cable modem Docsis 3.0
Digital Cable DVR HDTV

FTTP/N In-home content sharing


DSL
Local/LD IPTV Wireless integration

Telco
Both will have the ability to offer a 500 channel
Multi-room DVR, VOD, HDTV capable video package that
includes caller ID on the TV, remote DVR control
and access, content movement around the home,
unified communications, video calling etc..

© 2009 IDC Jan-09 38


Convergence and Complexity

Voice
Wireless

Text Messaging on TV
Caller ID on TV

Convergence and Complexity

Streaming Internet Video PC to TV Integration

Broadband Video

© 2009 IDC Jan-09 39


The March to Connectivity

Never Networked Sometimes Networked Always Networked

¾ Televisions ¾ Digital Cameras ¾ PC’s

¾ Set Tops ¾ MP3 Players ¾ Laptops

¾ DVRs ¾ Gaming Consoles ¾ Modems & Routers

¾ Landline Phones ¾ SmartPhones ¾ Printers/Peripherals

VoIP
Growth of IPTV

Media Adapters
Online Gaming
Faster LANs

© 2009 IDC Jan-09 40


“The Coming Storm”

The number of devices is


growing

The complexity and


connectivity of the devices
is increasing

Networked devices create


more trouble tickets

© 2009 IDC Jan-09 41


% of devices that required external
support
Experienced a support issue in the past 12 months?

TV
Mobile Phone
Printer
PC
Digital Camera
DVD Player
All the devices
MP3 Player/iPOD
required some
External Storage
external support
Laptop
Set Top Box
Wireless/Wired Routers
Gaming Console
DVR/Tivo
Smart Phone/PDA

0% 5% 10% 15% 20%


% of Problems
© 2009 IDC Jan-09 42
Customer Support Forecast

Customer support Growth Forecast First contact customer support is


expected to migrate from phone to
online support – however networked
3 problems will demand more Tier 2
support – creating more time and
expense
2.5

1.5 Customer Support


Cost (In Billions)
1

0.5

0
2007 2012

What companies will provide the bulk of customer support?

© 2009 IDC Jan-09 43


Who Gets Contacted?
Computing
Retail Chain
7%
Service
Provider
26%
Mobile
Retail Chain
18%
Service
Provider
21% Entertainment
Retail Chain
15%

Service
Provider
Tech
38%
Manufacturer
67%

Tech
Manufacturer
61%

Tech
Manufacturer
47%

© 2009 IDC Jan-09 44


Emerging Opportunities & Challenges

Service Providers are beginning to understand the


problem and are putting programs in place
Remote diagnostic tools are maturing for the PC –
the next step is other networked devices

There is still a gulf of understanding and


collaboration between network operators and
consumer electronics vendors
CE companies have typically used broadband
networks but have not been true participants

© 2009 IDC Jan-09 45


Essential Guidance

‰ New services are key to growth for all players – however


increased networking will lengthen customer support contacts and
increase expense
‰Consumer electronics companies need to understand that a
network-based problem is actually their problem too – consumers
are not going to care where the breakdown occurs in the chain –
they will purchase CE and associated content if it is easy and will
adopt slowly if it is difficult
‰ Better service support portals, home installation, remote
management services will ease the pain of complexity
‰ Neither network based service providers nor consumer
electronics companies can tackle the challenge in a vacuum – you
need each other

© 2009 IDC Jan-09 46


Questions

Please contact me at:


Ph: 508 935 4254
Email: medavis@idc.com

© 2009 IDC Jan-09 47


How Is The Global Recession Impacting
Semiconductor Demand and Technology
Adoption in CE and Mobile Devices?

Mario Morales
Program Vice President
Semiconductors

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Takeaway Points

Semiconductor industry downturn prolonged by slow


recovery in consumer and mobile phone segments
Multicore microprocessor SOCs enable richer internet
experience and convergence of CE and mobile
devices
Connectivity technologies and combo chips begin to
ramp in the 2H09 in smartphones and consumer
Portable media storage shifts almost completely to
NAND
Emerging devices offer volume opportunities for
suppliers who can deliver on a complete platform
© 2009 IDC Jan-09 49
Macroeconomic Reality
Global recession effects credit, funding of IT, and consumer spending
ƒ Downturn in consumer spending will be the key issue in 2009
– 2/3 of Americans own homes and 1/2 own stock—Declines in both markets bode poorly for spending
over the next 2 years
– Markets need confidence and leadership to reach bottom and stabilize sooner. Interest rate cuts,
tax cuts, infrastructure investments, and new stimulus package will bring relief by 2H09 and 2010

ƒ Negative impact for start-up companies who have 1 or 2 quarters of cash. Recession also
delays necessary consolidation among semiconductor suppliers who are not willing to
move forward on M&A using cash
Economy won’t bottom until the end of 2009 and won’t recover until mid 2010. US
will lead the worldwide recovery
1H09 will be more severe than 4Q08 due to business seasonality and current
utilization levels of suppliers
Overall capital spending cutbacks match the same level of pull back as last year
which is essential to easing the oversupply (DRAM, NAND, and foundry)
Companies with solid leadership and experience, and a healthy financial structure
will be in the drivers seat when the market recovers

© 2009 IDC Jan-09 50


Semiconductor Revenue Negatively
Impacted by Economy

PC Mobile Phone Consumer

15% Percentage Growth

10%

5%

0%

-5%

-10%

-15%
2007 2008 2009 2010 2011 2012

© 2009 IDC Jan-09 51


Market Landscape-Overarching Trends
Nearly 1.4 billion people are accessing the
2008 2012 internet today, by 2012 the number will reach
Internet
nearly 2 billion
Users ~1.4B ~1.9
ƒ Over 1.1 billion users will be accessing the
Devices 1.5B+ 3B+ internet on mobile devices
Source: IDC ƒ 3G/4G/WiMax subscribers will reach over
1.4 billion by 2012
Demands

ƒ Internet video will become mainstream by


2011 in TV households
• Processi • Security
Complexity ng • Manage Over 1.5 billion devices are being used to access
• Connecti ment
vity • Software the internet today, by 2012 the number of devices
• Storage
will more than double

ƒ Almost half of the devices will be connected


Enables
by 2012
Wireless broadband (100Mbps) will enable richer
content and broaden the reach of mobile devices
2008 2012
and services
Moore’s Law
Process 45nm 22nm However, content and usage models will
Transist 820M 1.5B ultimately dictate the path of device innovation
ors

© 2009 IDC Jan-09 52


Microprocessors Drive Embedded
Device Growth
Embedded microprocessors
8,000
moving from general purpose Unit Forecast (MU) CAGR 15%
products to the centerpiece of every
7,000
major device platform
6,000
ƒ Multimedia demand and
adoption growing across all 5,000
device segments
4,000
ƒ Digital home, connected
devices driving the need for 3,000
multiple data engines and
cores 2,000
– converging services and devices
require support of multiple 1,000
applications in parallel
– Mobile applications demanding 0
more performance at lower 2007 2008 2009 2010 2011 2012
power
Estimates include ASSPs, ASICs, and Standalone processors.
Volume includes mobile phones. Does not include PCs.

© 2009 IDC Jan-09 53


Integration of Connectivity
Technologies
Integration Trends

Power
Image GPS WiFi DTV FM NFC Bluetooth
Amplifier Sensor Radio Radio Tuner Receiver Radio Radio

GPS WiFi DTV FM NFC Bluetooth


ISP BB BB Demod Transmit BB BB
Transceiver

NOR Digital NAND


Apps/Media
Baseband
Processor
SRAM Processor MDRAM

Baseband
Analog

Multi-Radio
Integration
ƒ Integration when attach rates approach ~25% +

ƒ Targeting upper range multimedia and smart FM

phones, but migrating into mainstream and Bluetooth

consumer and PC areas WLAN

GPS

ƒ FM/BT common, BT/WiFi/FM ramping, Mobile


TV
BT/GPS/WiFi/FM/NFC emerging

© 2009 IDC Jan-09 54


Combo Connectivity Chip Solutions

Not just multiple radios on a single chip but also more


software that enable more adaptable devices

100%
90% % Stand alone
80% % Combo chips
70%
60% ƒ Combo chips as a
(%)

50% percentage of all


40% connectivity solutions are
30% expected to grow from 20%
20% in 2007 to over 60% in 2012
10%
0%
07

08

09

10

11

12

Includes Bluetooth, FM radio, GPS, WiFi, WiMAX, UWB,


20

20

20

20

20

20

Mobile TV, and NFC solutions

© 2009 IDC Jan-09 55


Mobile Phone Semiconductor
Connectivity Adoption
ƒ Bluetooth, FM radio and GPS will have the highest attach rates in mobile phones
in 2012, although all technologies are expected to experience robust growth
WW Mobile Phone Chipset Shipments by Technology

1,000 Bluetooth- CAGR = 13%


900
800 FM- CAGR = 16%

700 GPS- CAGR = 13%


Millions units

600
500 WiFi- CAGR = 54%

400 WiMAX
300
200 UWB

100
Mobile TV- CAGR = 108%
0
2007 2012 NFC- CAGR = 313%

© 2009 IDC Jan-09 56


Portable Devices and Media Shifts
Almost Entirely to NAND
NAND Bit Consumption by Market
Over 600 million flash
50%
memory cards will ship this
year
40%
Majority of MP3s are NAND
30% based devices. PMPs and
MIDs will also follow the same
20% path
By 2012, almost 45% of total
10%
NAND bit demand shipments
0%
will come from mobile phones
2007 2008 2009 2010 2011 2012 SSD will account for 10% of
DSC PMP(F) Mobile USB SSD NAND demand by 2012
Source: IDC Semiconductors January 2009
© 2009 IDC Jan-09 57
Emerging Devices: Netbook and MID
More devices per home (secondary device)
More devices connecting to the internet
ƒ Simple and affordable devices that connect to the internet. Always on and
connected
ƒ Internet in your hand: Apple iTouch, Blackberry Storm, Nokia, Samsung, G1,
and many more
ƒ $200-$250 price point will be the battleground for market acceptance
Intel, TI, Qualcomm, Marvell, and others launching architectures specifically aimed
at these new categories. Enables more development and design. Linux, XP, and
Windows 7 will all have a play in these emerging device categories
Device attributes: Connectivity not optional, LCD size determines functionality,
power (> 1W), flexible storage required, and system integration critical
Content and usage models will dictate the path of device innovation, business
model, and market acceptance
ƒ Apple has the right formula today, but consumer and mobile markets have
room for more platforms and services
© 2009 IDC Jan-09 58
Closing Thoughts
Despite the downturn in the market there are real opportunities for suppliers
as the business models, devices, and services continue to evolve
Connectivity, multicore SOCs, and NAND are the key critical technologies
in consumer and mobile
Several portable CE categories are maturing or soon will be
ƒ As competition from smartphones and feature phones challenge the standalone
devices
ƒ Netbooks will grow at a CAGR of nearly 40% in units over the next five years,
but will remain limited in terms of semiconductor revenue opportunity
ƒ MIDs – will be a unique segment, but will largely grow at the expense of
traditional PMPs and PNDs over the next couple of years. Smartphones will
take over segment in the long term
ƒ New usage models, richer content drives, more technology opportunities for suppliers
ƒ Entire ecosystem must continue to invest in user interfaces that offer an internet experience
without compromise
ƒ Content will need to be further refined to create real, sustainable business models for the
entire value chain for these new devices to prosper
© 2009 IDC Jan-09 59
Questions

Please email me at
mmorales@idc.com

© 2009 IDC Jan-09 60

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