Love the data, hate the graphic

One of the key themes we're focused on at the moment is the multilateral asymmetric contest amongst major platform players (Apple, Google, Microsoft and Nokia in particular), device vendors (Apple, RIM, Nokia, Samsung, Sony Ericsson, LG, Motorola, HTC in particular), service providers (Google, Apple, Amazon in particular) and network operators (Verizon, Vodafone, FT Orange and so on). There's some interesting data from Silicon Alley Insider illustrating the size of the stakes...

The cash resources of some of the major players

While the numbers are interesting, I have to confess I hate the graphic... It looks like an area chart, but it's actually a line chart. Tufte's head would explode...

And I'd love to see the analysis extended to include Nokia, RIM, Samsung and so on. And in this context, who cares about Intel, other than ARM and Qualcomm?

The new age of connected devices?

Does the iPad herald a new age of connected devices, or is it “just a big iPod”? Reviews have been mixed.

Apple's iPad: With WiFi for $499; with WiFi and 3G for $629

And even if you love it, will you be willing to pay the extra $130 upfront and $29.99 per month for 3G service, or is WiFi sufficient? (Particularly given that a 3G chipset adds only $7-10 to the BOM).

I suspect WiFi is sufficient, and that the price of 3G connectivity is too steep. It is too steep, in particular, because in a new era of multiple connected devices each new device cannot come with its own expensive data plan. It is one thing to pay for home broadband ($40-50) and a smartphone data plan (~$30). It is another to add a netbook, a MiFi, a connected camera, an eReader, and/or an iPad and have each of these carrying its own contract.

Would you buy a separate data plan for each of these devices?

My family looked at netbooks for Christmas this year, and chose to buy without the subsidy and wireless broadband contract. The most common use cases for netbooks and iPads are still likely to be in places with WiFi connectivity: Home, office, hotel, café. And if you own more than one connected device, then you are better off buying a MiFi portable WiFi hub (from Verizon or Sprint) and sharing 3G connectivity across multiple devices than having a 3G connection for each device.

With this in mind, it actually could make more sense for wireline broadband providers to subsidize netbooks and iPads and connected consumer electronics than for wireless companies to do so. In our case, the netbook bundled with FiOS Internet or Comcast’s DOCSIS 3.0 service would have been more compelling than the 3G offer. For the iPad, a purchase for less than $499 with WiFi and a bundle of pre-loaded apps and services (such as Verizon Media Manager or a Comcast TV Everywhere app) from a broadband service provider would be interesting indeed.

Fierce debate continues broadly

Over at FierceBroadbandWireless, there's a good overview of the broadband stimulus program by Lynette Luna, drawing on some of our analysis.

She also has some interesting commentary from Robert Anderson of WindTalk; one of the applicants that's focused on loans rather than grants.

Worth reading.

(Posted from the back seat of a taxi in Chicago, using a MacBook Air and Verizon Wireless MiFi)

Voda' phones

One of my pet peeves is when people who should know better mis-spell Vodafone and Vodaphone. Shortening it to Voda is OK, but makes me think of the Star Wars Jedi Knight - and then the Weird Al song. Anyway, one of the things that makes competition in high-tech so interesting and challenging is that it is often not just 'horizontal'.

Let me illustrate this with an example from DigiTimes this morning:

MediaTek and Vodafone have jointly announced that Vodafone has selected MediaTek chipsets for two new devices. The strategic partnership with MediaTek provides Vodafone with the opportunity to offer the Vodafone 340 camera phone at a very affordable price as well as its first entry level, low-cost touch screen device for prepaid customers – the Vodafone 541, Vodafone said.

Vodafone 541

This is one of eight Vodafone branded 'phones launched today.

'Horizontal' competition is two similar businesses competing with one another for market share:

• Vodafone competing with FT-Orange in the UK


• Verizon competing with AT&T in the US

'Vertical' competition is when businesses compete for value capture, their share of the pie, rather than for market share amongst customers. Here Vodafone is partnering with MediaTek for chipsets, but effectively competing with other mobile phone vendors, such as Nokia, for some of the value created.

Competition can in fact be 'diagonal' or asymmetric, when it is amongst businesses that have fundamentally different scope of activities, or business models. Think Google giving away stuff free to generate ad revenue, competing with Microsoft's packaged applications business.

Much of the competition in the mobile and broadband sector now takes this form; watch this space for more commentary...