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Smartphones eat up 5.9 percent of the electronic gadget market

post #1 of 29
Thread Starter 
Sales of general purpose smartphones are causing the market for standalone gadgets such as cameras, camcorders and GPS devices to shrink, falling 5.9 percent overall during the holiday season in the US.

According to market research firm NPD Group, sales of all electronics reached $9.5 billion in the five weeks ending December 24. The year's decline was not quite as bad as last year, which was down 6.2 percent compared to the same period in 2009.

Sales of camcorders dropped by 43 percent, digital picture frames by 38 percent, GPS navigation devices by 33 percent and both MP3 players and "point and shoot" cameras were down 21 percent, all apparent casualties of the general purpose smartphone.

Sales of electronic devices that don't directly overlap in functionality with the smartphone fared better, with PC and TV sales down just 4 percent.

Desktop PCs were down 2 percent overall, while notebook sales were down 5 percent. Average Selling Prices of PCs actually inched upward $9 to hit $575, continuing last year's trend among PC makers of increasing prices for the holidays, NPD reported.

Sales of HDTVs larger than 50 inches helped reverse the decline among TVs, where sales of home theater systems increased by 10 percent and sales of stand-alone streaming devices (which appear to be led by Apple TV) jumped by 65 percent.

In contrast, Blu-ray players were down 17 percent after growing 3.8 percent last year, an endorsement of Apple's exclusive digital downloads strategy for media playback.

"The accelerated rate of decline in older technology categories such as DVD, GPS and MP3 players put a ceiling on how well the industry could perform during the holiday," wrote NPD's vice president of industry analysis Stephen Baker.

A report by Canaccord Genuity predicts that Apple will report sales of 30.1 million iPhones for the holiday quarter, a jump of 31 percent over Apple's sales in the third calendar quarter. The firm says companies selling Android products will report shipments of an estimated 68.9 milllion devices, representing growth of 17.3 percent over the previous quarter.
post #2 of 29
Upon reading the title I was thinking "Is that all they account for?", I didn't expect that they'd consume 5.9% more of the market over the holiday season. While I don't expect to ever buy another standalone GPS or point-and-shoot camera and smartphones account for over 50% of the US handset market I wasn't expecting such a large shift.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #3 of 29
Quote:
Originally Posted by AppleInsider View Post

A report by Canaccord Genuity predicts that Apple will report sales of 30.1 million iPhones for the holiday quarter, a jump of 31 percent over Apple's sales in the third calendar quarter. The firm says companies selling Android products will report shipments of an estimated 68.9 milllion devices, representing growth of 17.3 percent over the previous quarter.

Canaccord, in a companion report, went on to say they estimated "AAPL iPad sales for all of 2012 would be approximately 55 million units, a 30% jump from total 2011 tablet sales of 38.1 million..."

“. . .the iPad 2 remains by far the best selling tablet versus very modest sales of competing products such as the RIM (RIMM) PlayBook, LG G-Slate and the Motorola (MMI) Xybord.” He noted that the iPad 2 market share for 2011 was 52.4%. The next largest market share is held by Amazon’s (AMZN) Kindle Tablet With 10.3%."

Certainly impressive numbers for Apple.

Canaccord's tablet projections for 2012 show 104M global tablet sales with Apple getting over 50% of those.
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post #4 of 29
Great time to buy AAPL.

Retina iPad 3, cheaper iPad 2, new iPods, iTV, 25 new Chinese stores, iPhone 5. The only way it up
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post #5 of 29
I wonder how much this is down to smartphones and how much this is down to the current economic turmoil.
post #6 of 29
Quote:
Originally Posted by RichL View Post

I wonder how much this is down to smartphones and how much this is down to the current economic turmoil.

I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.

Cameras and camcorders though? Yeah, I think a huge percentage of those buyers consider whether their phone can do the trick, and many of them decide that it can. Cisco bought Flip and just shut down shop, for god's sake!
post #7 of 29
Quote:
Originally Posted by cameronj View Post

I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.

Wouldn't that really depend on what navigation software, and what phone you have? I'm using NDrive, you only have to download the maps once, and they look fine on the 4" screen
post #8 of 29
Quote:
Originally Posted by cameronj View Post

I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.

TomTom for iOS is the best GPS I've owned. Cheaper than stand alone unit (on par if you buy their mounting kit), better display, integration with contacts, more features, and boots faster.

I'm not sure why you think there is some major data usage with it. The maps are local and about once a month I get a message about updating maps which is convenient compared to plugging into a computer or loading on SD card. It's always under 1MB and they ask you before DLing.

As for size, it works on the iPad, too.

If there is one 3rd-party app I wouldn't give up it's TomTom.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

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post #9 of 29
Quote:
Originally Posted by jfanning View Post

Wouldn't that really depend on what navigation software, and what phone you have? I'm using NDrive, you only have to download the maps once, and they look fine on the 4" screen

Definitely. But at this point, 95% of the phones out there (screen size and software) are not capable of competing with a decent GPS, and I don't think any appreciable part of the market does it. Maybe by next year. But the question was whether phones impacted sales of those devices this past year, and I don't see it. Not outside the nerd segment who are willing to sacrifice usability for price. A lot of people reading this thread will say "no way, I know a TON of people who do that." But ask yourself, when was the last time one of those people had a date?
post #10 of 29
Quote:
Originally Posted by cameronj View Post

I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.

A lot of iOS GPS navigation apps have local maps, so the data usage complaint is not applicable. Some chargers provide enough juice to keep your device from depleting battery life.
I use Google Voice, so it is easy for me to send all incoming calls to voicemail (it also temporarily suspends the forwarding of any SMS messages to your devices).

So really, your only valid point is the one about small screen size, yet the iPhone screen isn't that much smaller than that of a dedicated GPS unit. And the iPhone screen is higher quality and easier to read in many/most situations. Plus if you have a dedicated iPod stereo connection (via dock connector, etc.), the GPS app's turn-by-turn voice guidance will override music playback.

Admittedly, I don't use GPS navi very often, so paying $10 for CoPilot Live seems to make more sense than shelling out hundreds for a standalone GPS navigation device.
post #11 of 29
Quote:
Originally Posted by cvaldes1831 View Post

And the iPhone screen is higher quality and easier to read in many/most situations. Plus if you have a dedicated iPod stereo connection (via dock connector, etc.), the GPS app's turn-by-turn voice guidance will override music playback.

And brighter with a better touch interface for easier interaction.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #12 of 29
Quote:
Originally Posted by cvaldes1831 View Post

A lot of iOS GPS navigation apps have local maps, so the data usage complaint is not applicable. Some chargers provide enough juice to keep your device from depleting battery life.
I use Google Voice, so it is easy for me to send all incoming calls to voicemail (it also temporarily suspends the forwarding of any SMS messages to your devices).

Heh, you couldn't have done more to prove my point. You are what they call the tail end of the curve my friend. There is a tiny fraction of the population willing AND able to jump through all those hoops just to avoid buying a $90 GPS.
post #13 of 29
Quote:
Originally Posted by cameronj View Post

Heh, you couldn't have done more to prove my point. You are what they call the tail end of the curve my friend. There is a tiny fraction of the population willing AND able to jump through all those hoops just to avoid buying a $90 GPS.

"Sales of [...] GPS navigation devices [dropped] by 33 percent."

We might be on the tail, but it's not the end.

People said the same thing about phone cameras never being able to compete with "real" cameras. You probably said so yourself but now you think the smartphone is affecting those markets.

The future of GPS is integrated in our phones for when we're truly mobile and in our cars for driving, not an aftermarket you suction cup to the dashboard with dangly cords hanging down for power.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #14 of 29
Quote:
Originally Posted by Ireland View Post

Great time to buy AAPL.

Retina iPad 3, cheaper iPad 2, new iPods, iTV, 25 new Chinese stores, iPhone 5. The only way it up

Yes. And, the biggest prize of all, China Mobile (~630 mobile subscribers, 10M of whom reportedly use the iPhone already, without even it being legally available from the carrier)!

/rubhandsinglee
post #15 of 29
Quote:
Originally Posted by cameronj View Post

Heh, you couldn't have done more to prove my point. You are what they call the tail end of the curve my friend. There is a tiny fraction of the population willing AND able to jump through all those hoops just to avoid buying a $90 GPS.

I don't think it's necessarily all about the price, maintaining a separate device has its awkward moments as well. More cars have built-in navigation every year, I think the need for a stand-alone driving GPS diminishes for that reason more than a phone. Integrated car navs cost more than separate units, but they're worth it because they do away with the cord, mounts and other hassles found in non-integrated devices. Why the article jumps to assume it's mainly phones draining GPS sales, I don't know.

As for the other issues, battery drain exceeding the charger was a problem for my 3G (once), but my iPhone 4 had no such problem with it on an eight+ hour round trip in a car. On a two week trip, I did exceed my 200MB plan, but it didn't seem to be that big of a deal given how much driving I did, often about two hours a day, every day, for two weeks.
post #16 of 29
Quote:
Originally Posted by anantksundaram View Post

Yes. And, the biggest prize of all, China Mobile (~630 mobile subscribers, 10M of whom reportedly use the iPhone already, without even it being legally available from the carrier)!

/rubhandsinglee

And with EDGE as the maximum cellular data tech.


Quote:
Originally Posted by JeffDM View Post

I don't think it's necessarily all about the price, maintaining a separate device has its awkward moments as well. More cars have built-in navigation every year, I think the need for a stand-alone driving GPS diminishes for that reason more than a phone.

Battery drain exceeding the charger was a problem for my 3G (once), but my iPhone 4 had no such problem with it on an eight+ hour round trip in a car. On a two week trip, I did exceed my 200MB plan, but it didn't seem to be that big of a deal given how much driving I did, often about two hours a day, every day, for two weeks.

There are also a lot of places outside of a vehicle that cameronj is ignoring. Walking directions and public transportation have been Maps for years. Then there is Find My Friends and the GPS tagging in photos among other apps. GPS in smartphones is the most common use of GPS HW today and it's going to diminish until something post-GPS can possibly replace it.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #17 of 29
Quote:
Originally Posted by cameronj View Post

Heh, you couldn't have done more to prove my point. You are what they call the tail end of the curve my friend. There is a tiny fraction of the population willing AND able to jump through all those hoops just to avoid buying a $90 GPS.

And yet, the evidence points to something more than a tiny fraction of the population...

Quote:
Originally Posted by AppleInsider View Post

Sales of general purpose smartphones are causing the market for standalone gadgets such as cameras, camcorders and GPS devices to shrink, falling 5.9 percent overall during the holiday season in the US.

...

Sales of camcorders dropped by 43 percent, digital picture frames by 38 percent, GPS navigation devices by 33 percent...

My 6+ year old car didn't come with an iPod stereo interface. I installed it myself about six months after I purchased it new, then proceeded to plug in a bunch of iPods over the years. A few months ago, I acquired an iPhone, my first smartphone.

I didn't spend any extra money/effort to get GPS navi, nor did I really jump through a bunch of hoops to avoid buying a $90 GPS unit. My iDevices are better integrated with my car and have been since late 2005.

Even if I'm not using GPS navi, I still have my iPhone's incoming calls forwarded to voicemail. I've been using Google Voice (and its predecessor Grand Central) long before I've ever had a smartphone.

All of the major GPS manufacturers have pushed strongly into smartphone apps. Clearly, these companies see the writing on the wall, otherwise they would not sink in the R&D for "the tail end of the curve."
post #18 of 29
Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.

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post #19 of 29
Quote:
Originally Posted by Aizmov View Post

Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.

Why not?

I expect Apple to make cell phones and tablets for the rest of my life... and remain profitable. If Apple never came out with another "new" category... they'd still be in business.

In contrast... ask RIM how their tablet effort turned out. They tried to go into a new product category... and failed miserably. Same for Palm/HP.

Plus... is Apple really "riding on the back" of categories that they defined?

As a consumer electronics company... Apple is already in computers, MP3 players, phones, tablets, and media and content delivery.

If the Apple TV rumors are true... that will be another category.

I can't think of much else... unless you mean game consoles, home appliances, car stereos and clock radios...
post #20 of 29
Quote:
Originally Posted by Michael Scrip View Post

I can't think of much else... unless you mean game consoles, home appliances, car stereos and clock radios...

I can't think of anything else myself. That's why neither of us are Apple's CEO But as Apple did with the Apple II, Mac, iPod, iPhone and iPad, they need to continue on doing. What I want them to do is take the Apple TV and grow it even more with a browser, games and apps. That's all I can think of, for now

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post #21 of 29
Quote:
Originally Posted by Aizmov View Post

Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.

They were in computers since their founding, but now you think they're resting on their laurels on a platform that isn't even five years old? iPad isn't even two years old yet.
post #22 of 29
Quote:
Originally Posted by Michael Scrip View Post

Why not?

I expect Apple to make cell phones and tablets for the rest of my life... and remain profitable. If Apple never came out with another "new" category... they'd still be in business.

In contrast... ask RIM how their tablet effort turned out. They tried to go into a new product category... and failed miserably. Same for Palm/HP.

Plus... is Apple really "riding on the back" of categories that they defined?

As a consumer electronics company... Apple is already in computers, MP3 players, phones, tablets, and media and content delivery.

If the Apple TV rumors are true... that will be another category.

I can't think of much else... unless you mean game consoles, home appliances, car stereos and clock radios...


A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.
post #23 of 29
Quote:
Originally Posted by Aizmov View Post

Apple needs a new product category. They can't ride on the back of the iPhone and iPad forever.

The iPhone and iPad get better and cheaper and the market gets bigger over time, this is a huge market. And yes, iTV will be another market. The 15" Air and a cheaper 13" Air will be interesting too.
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post #24 of 29
Quote:
Originally Posted by Jack99 View Post

A better way to put it is that Apple should continue carving out and creating new markets through its pioneering spirit while maintaining its current strengths. The iPad and the iPhone were and are good cash cows. But when your business model requires that you bring shareholder value through consistent rises in quarterly earnings, you can't just stand still and expect a couple of products to keep growing in terms of sales. At some point, you can only sell so many iPads and iPhones to so many people. It's great that the smartphone and tablet markets are still maturing. But the biggest danger of standing still is running headlong a saturated market. I don't think this will happen for at least a few more years. But before that happens, Apple will probably consider other new product markets to enter. Apple TV could be one of them.

I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.

Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?

I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?

Aren't the other guys expected to do just as much?
post #25 of 29
Quote:
Originally Posted by Michael Scrip View Post

I understand growth is important to corporations and shareholders... but so is selling a ton of products and making a ton of cash from those products.

Sony is having trouble selling TVs... LG and Motorola aren't making any money selling phones... aren't they in a little more danger than a company like Apple?

I guess what I'm asking is.... if Apple can't sit still and expect a couple of products to keep growing in terms of sales... what hope is there for everyone else?

Aren't the other guys expected to do just as much?


I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.
post #26 of 29
Quote:
Originally Posted by Jack99 View Post

I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.

I'm not suggesting that Apple stops making new products. Nor am I saying Apple is perfectly fine sticking to their current course.

I was just asking what else can they do? We think they are gonna break into the TV business. But, the TV business is pretty much a commodity right now. Hopefully Apple will put their unique spin on it, leveraging their existring iTunes media store.

Other than TV... where else can a consumer electronics company go?

And like I said before... if Apple must continue to break into new markets in order to stay successful... doesn't everybody else?

We know Apple is the king of reinventing themselves... what hope is there for everyone else?
post #27 of 29
Quote:
Originally Posted by cameronj View Post

I don't think smartphone sales really impact GPS sales, for one. I've seen one person use his phone as a GPS in his car, it was a total pain in the ass. I use mine sometimes, but I also have a regular GPS. The data usage, the battery drain (even when plugged in), the small screen size and the risk of an incoming call all make the phone a poor car GPS right now.

Well, I don't look into other people's cars, but I do know that I use my iPhone as a GPS, and it's great! I use the MotionX app, which is $1, and $25 for voice for a year. I hook it up to an adapter I installed, by Peripheral Electronics, which used to play my iPod thru the stereo. They are constantly improving it, and the voice directions means I never have to look at the screen, though the screen view is good. It's as large as those old 3.5" GPS screens, but it's far higher res, than those old QVGA things.

I don't get battery drain since it's connected, and the data use is minimal. And, incoming calls fade out iTunes just like you'd expect. I just don't see the downside at all. It's far better than any GPS I've seen anyone else use, though I admit I haven't seen that many, since I usually do the driving!

I used to have a built-in GPS in my BMW back when it costs $2000, and used CDs, and it was fine, but the price makes it a non-starter, when Garmins and TomToms are so cheap. But, like P&S cams, you just don't feel you need it when you have an iPhone. I don't worry about having to hide it in case of thieves smashing my window, since I always take my phone with me.
post #28 of 29
Quote:
Originally Posted by SolipsismX View Post

And with EDGE as the maximum cellular data tech.

I've used EDGE in China on China Mobile. It's fine. The signal is incredibly strong even in the countryside. I don't want to know how many watts their towers are transmitting! And, throughput is not bad considering how slow DSL is in most homes. Most people are used to slower internet speeds to begin with.
post #29 of 29
Quote:
Originally Posted by Jack99 View Post

I'd hate to sound condescending, but sadly, that's how corporations operate. Try reading some articles on the Wallstreet Journal to see what I mean. This isn't about having expectations too high. Apple operates on this model and is no exception to the rule, hence the trend toward churning out new products since the very first iPods and Macbooks were first introduced. It's reality. Otherwise, if we took your line of reasoning, Apple shouldn't have even developed the first iPhone or iPad. They should've just stuck with making iPods only. If they'd stuck with only iPods, many shareholders would've fled a very long time ago. But they haven't because they've had faith in Apple's ability to enter new markets. The iPod as we all know is a dying market of its own...but Apple has done a good job of recognizing that early on and establishing new markets to replace it.

I don't think you can learn too much from reading the WSJ. All of those companies are trailing Apple, not leading it.

I don't think the original poster was saying that Apple wouldn't continue doing what it's doing, but that it would survive if it did not.
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