Thought Starters: ubiquitous smartphones, post-PC and universal basic income

Thought Starters provides me with a chance to review and highlight some of the more important or interesting research and opinions that I’ve read over the last week or so. This edition looks at the transition from a PC to a smartphone-dominated world, the story behind financial results from Apple and Facebook, the growth of Sci-Hub and a closer look at the universal basic income model among other things:

Benedict Evans profiles the increasingly ubiquitous smartphone and how the mobile market is changing as the technology becomes increasingly commodified:

Smartphones have unique scale for tech

Steven Sinofsky moves to an iPad Pro for his daily computing requirements and shares his experiences. As the PC loses its hegemony, raises new challenges and opportunities for businesses and entrepreneurs:

The shift to this new form factor and new platform will bring with it cultural changes that take advantage of what are perceived as disadvantages. As makers, being early is essential, otherwise you are late.

For more on the topic of post-PC world, I’d suggest reading Paul Thurrott’s reluctant forecast of the demise of Microsoft’s Windows and Steven Sinofsky and Benedict Evans rounding out their thoughts on the a16z podcast:

The release of quarterly results has provided a valuable window into the ups and downs of some of the world’s tech giants. Neil Cybart’s analysis of Apple’s financial results suggests we’ve reached peak iPhone, with sales hit by longer upgrade cycles and fewer easy growth opportunities:

iPhone Unit Sales Growth (trailing 12 months)

Apple CEO Tim Cook has emphasised the company’s service offerings in recent announcements. It’s worth having a read of Ben Thompson’s analysis of this move as the company looks to avoid being typecast as simply a maker of beautiful devices:

With regards to the iPhone, it’s hard to see its record revenues and profits ever being surpassed by another product, by Apple or anyone else: it is in many respects the perfect device from a business perspective, and given that whatever replaces it will likely be significantly less dependent on a physical interface and even more dependent on the cloud (which will help commoditize the hardware), it will likely be sold for much less and with much smaller profit margins.

Facebook had more joy with its financial results growing monthly and daily active users and mobile’s share of traffic although growing presence in developing markets is dragging down its average revenue per user. Whilst recent research suggests that people might be increasingly wary of sharing their personal thoughts on Facebook, the social network maintains a strong role as onramp to many consumers’ digital world as Will Oremus comments:

The company has reinvented itself in two distinct ways. First, Facebook as a platform has been quietly evolving into something different than a social network—something less personal, but no less useful. Second, Facebook as a company has been furiously hedging its bets on the future of technology and social media, to the point that it is no longer properly described as merely a social network—no more than Alphabet (né Google) is properly described as a search website.

So what has the Facebook app and site become, if not a social network? The answer is rather obvious when you watch how people use it. It has become a personalized portal to the online world.

Whilst tech unicorns have typically avoided the scrutiny of the stock market by staying private, analysis of sales of ping-pong tables in Silicon Valley suggest that venture capital funding might not be as free flowing as it once was:

Sales of ping-pong tables to companies at a Silicon Valley store correlate with venture-capital deals made during the same quarter.

Whilst we’re on the subject of startups, it’s worth reading Chris Dixon’s call for entrepreneurs to look broadly to better understand future threats and opportunities, namechecking automation of logistics, apps, video and voice services:

Think of the internet economic loop as a model train track. Positions in front of you can redirect traffic around you. Positions after you can build new tracks that bypass you. New technologies come along (which often look toy-like and unthreatening at first) that create entirely new tracks that render the previous tracks obsolete.

The American IAB has released research tracking consumers’ use of smartphones and tablets when shopping, pointing to the ways different age categories use their devices. This providing both a threat and an opportunity for traditional bricks and mortar retailers:

Smartphone as Shopping Assistant

John Bohannon profiles the growth of Sci-Hub which offers users a means of accessing copyrighted academic research regardless of whether people have the necessary institutional resources. The service provides a valuable source for researchers in less well-funded institutions, but usage statistics suggest that users include plenty of people with the necessary credentials and are simply looking for more user-friendly alternatives:

Server log data for the website Sci-Hub from September 2015 through February 2015

With predictions of automation threatening employment across an increasingly broad spectrum of jobs, there’s been growing calls for the introduction of universal basic income. This would essentially provide a guaranteed income to all regardless of employment status and has gained an interesting collection of supporters from both ends of the political spectrum. It’s something I am expecting to hear a lot more about in the coming months and you get an introduction to the concept from Tim Harford (shorter version), Andrew Flowers (longer version) and the Freakonomics team (podcast version).

The featured image is a Nerone mural from Bordeaux, France published in ekosystem.

Thought Starters: young people’s media and device use, Facebook Messenger’s evolution, grey zone conflicts and the gender pay gap

Thought Starters provides me with a chance to look through articles, research and opinion pieces, highlighting interesting trends, developments and changes in the world you and I live in.  Among the stories and research we look at in this edition are the habits of children and young adults, the growth of Facebook Messenger, grey zone conflicts, the gender pay gap and lots more.

There’s been growing speculation that Twitter may increase the character length of its posting as it looks to get ahead of Facebook in its user growth stakes (see below).  Shira Ovide gives a strong argument for retaining it as it is, although I would argue there’s definitely scope for excluding links, images and video URLs from tweets’ character limit:

Comparison growth monthly active users of Facebook and Twitter

Younger audiences given an indication of future habits of  the general population. Dan Kopf analysis young adults habits in the American Time Use Survey which unsurprisingly points to growing gaming, computer use and reading and decline in time spent watching television:

Which leisure activities are twentysomethings spending more time on?

Benedict Evans on the other hand has used Ofcom’s Children and parents: Media use and attitudes report to look at the habits of British children which points to the substantial transition to mobile phones and tablets:

What would children miss

Flurry has released their analysis of Europeans’ use of smartphones and tablets based on their app data which shows wide variations in device penetration as well as giving clues on how mobile devices are being used:

Smart device penetration in Europe

Facebook has done a great job of transitioning to a mobile world with 78% of its ad revenues now coming from mobile. Facebook though is not one to rest on its laurels, with Facebook Messenger seen as a key component in strengthening its hold on mobile consumers. Facebook has just published a review of highlights for Messenger from 2015 which gives an indication of the social network’s ambitions for the mobile messaging service:

Facebook Messenger 2015 highlights

As mobile phones approach market saturation in developed markets, consumer electronics brands are looking to new categories for a boost in their revenues. Unfortunately for the brands, Accenture‘s global research profiled by Matt Rosoff  suggests that consumers aren’t getting caught up in the hype for new products despite a growing array of offerings:

Consumers are bored with today's tech and nervous about tomorrow's

Gartner’s CMO Spend Survey points to growing marketing budgets and an emphasis on digital commerce, innovation, sales conversion and customer retention. You can find further analysis of the survey results from Simon Yates who points among things to the blurring distinction between offline and online marketing:

Marketing budgets continue to grow

Interested in knowing what jobs are likely to keep you employed into the future? The Federal Reserve Bank of St Louis has analysed employment and unemployment rates for jobs on the basis of how routinised and levels of cognition which might give you some pointers whether you need to be retraining:

Routine vs Non Routine Cognitive vs Manual EmploymentFigures from Bloomberg point to the substantial cuts in employment some banks have taken post financial crisis. It might be rather too optimistic to hope that those people whose actions fueled the crisis might have been among the first to leave:

Staff cuts at the World's biggest banks

Cass R. Sunstein profiles Gabriel Zucman’s The Hidden Wealth of Nations: The Scourge of Tax Havens, examining the growing role that tax havens play in enabling corporations and the wealthy to avoid paying their fair share of taxes. Zucman’s analysis provides a guide to the scale of the problem and also points to the successes and failures different institutions have had in addressing the problem of tax evasion:

In the aftermath of the financial crisis, you might expect that there would be an international crackdown on the use of tax havens, and as we shall see, international attention is indeed growing. But the numbers demonstrate that no crackdown has occurred. In Luxembourg, offshore wealth actually increased from 2008 to 2012 (by 20 percent). In Switzerland, the increase has been comparable; foreign holdings are now close to an all-time high. Disturbingly, the new wealth is coming mostly from developing countries, which poses a serious problem in light of the severe strains on their limited budgets.

China’s economy is going through a rough patch, with the share market in a nose dive.  Given the over inflated valuation of many of the assets. Given the overinflated value of many of the assets in the country’s equity markets, this trend is unlikely to change (unless the government chooses to prop it up):

China Battles to Shore Up World's Priciest Stock Market

High profile Silicon Valley venture capitalist Paul Graham’s recent blog posting in which he argues that income inequality per se is not a bad has inevitably kicked up a storm of reactions. Among the more nuanced responses is Ben Thompson’s analysis who points to the risks and benefits associated with a more deregulated economy and calls out for the need for a strong social safety net that is independent of our employers:

Technology is changing the world, and it is naive to not expect the world to begin to push back. Rather than always be reactionary, it is past time for the technology industry broadly and Silicon Valley in particular to get serious about what that world will look like in the future, especially given the fact there is actually a way forward that is a win for not just technology companies and their investors, but for those who are impacted — i.e. everyone. Just as we should separate the means by which Uber allocates drivers from the ability to pay for a ride, it makes sense to separate work from the provision of a social safety net, and those most able to capitalize on this new world order should be the most willing to pay.

The conflict in Syria and the resulting flood of refugees fleeing to Europe is unfortunately leading to an anti immigration backlash in many European countries. Victims aside from the refugees fleeing harm in the middle of a European winter include the Schengen Agreement which previously allowed the free flow of people across much of mainland Europe:

Recent changes to crossing Europe's borders

Peter Pomerantsev uses the examples of China in the South China Sea, Russia in Crimea and Syria and ISIS with its terrorist attacks to highlight the growing importance of messy grey zone conflicts around the world:

It’s a brave new war without beginning or end, where the borders of peace and war, serviceman and civilian have become utterly blurred—and where you and I are both a target and a weapon.

Whilst we’re on the subject of globalisation and its impacts, The Economist has updated its Big Mac Index, pointing to who is paying over the odds for their guilty pleasure:

The Big Mac Index

The Freakonomics podcast is one of my regular listening appointments and this week’s edition looking at the causes and effects of the gender pay gap is well worth downloading.

The featured mural is by eko from his Flickr page.

Thought Starters: decacorns, the iPad Pro opportunity and the implications of CRISPR

The following is a look through articles, research and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

CB Insights profiles the growing valuations of the “decacorns” (private companies valued at over $10bn). Fidelity’s recent markdown of investments in Dropbox and Snapchat could be simply related to these companies’ specific circumstances or potential sign of a market correction:

Deals to Top Private Company Unicorns Valued at Over $10bn

Apple’s hoping that the release of the iPad Pro will give its tablet offering a much needed boost and the product’s performance mean that the iPad will be seen increasingly as a device to create as well as consume as John Gruber comments:

“We’ve now reached an inflection point. The new MacBook is slower, gets worse battery life, and even its cheapest configuration costs $200 morethan the top-of-the-line iPad Pro. The iPad Pro is more powerful, cheaper, has a better display, and gets better battery life. It’s not a clear cut-and-dry win — MacBooks still have more RAM (the iPad Pro, in all configurations, has 4 GB of RAM, although Apple still isn’t publishing this information — MacBook Pros have either 8 or 16 GB), are expandable, and offer far more storage. But at a fundamental level — CPU speed, GPU speed, quality of the display, quality of the sound output, and overall responsiveness of interface — the iPad Pro is a better computer than a MacBook or MacBook Air, and a worthy rival to the far more expensive MacBook Pros.”

One of the trends driving growth in a new range of startups is the shift to smartphones which is profiled in these global figures from Creative Strategies:

Percentage of time spent by device

90% of the time consumers spend on smartphones is spent in apps according to Flurry figures with Facebook, Google and Apple dominating in terms of the reach of their apps according to comScore figures:

Top 15 Smartphone Apps

Britney Summit-Gil looks at how the internet has enabled consumers to be better informed on a whole host of issues, but has lagged when it comes to understanding their own communities:

Internet users say digital tech makes them better informed than 5 years ago

Online advertising has been criticised for providing metrics that fail to reflect audience exposure.  Seb Joseph explores The Economist’s move to offer attention metrics which will better reflect consumers’ actual exposure to advertising:

“Working with analytics partners Chartbeat and Moat Analytics, The Economist tracks active time view – only counting a view when an ad is in view and the reader is actively engaged, i.e typing or scrolling up and down the page. Only those impressions that generate over 5 seconds of active view time will count towards the attention buy.”

Before brands throw all their media budget behind these new online advertising opportunities, it’s worth considering GroupM research which points to television’s lead in generating short to medium term sales (bearing in mind the research was commissioned by TV marketing body Thinkbox):

“GroupM found that media account for on average 39% of sales in the short to medium term (within three months of a campaign finishing); 33% of these media-driven sales are from TV advertising, more than any other communication channel. Paid-for online search created 22%, online display 12%, affiliates 10%, print 8%, direct mail 8%, radio 3% and outdoor 1%.”

Online media also needs to contend with declines in referral traffic from Facebook according to a report from Matthew Ingram. It’s far from clear  whether this is a result of a content glut or Facebook dialing back traffic but it does highlight how vulnerable mainstream content providers are to changes by Facebook and other intermediaries:

“The other nagging fear for media companies is that Facebook is essentially engaging in a large-scale bait and switch, by encouraging them to host all of their output on its platform, but then gradually turning off the traffic tap so that their reach declines. At that point, the social network can recommend a number of ways to boost the reach again—including by paying for promoted posts and other forms of advertising. Facebook would no doubt protest that it is doing nothing of the kind, but the fear remains.”

Michael Specter profiles the growing opportunities to manipulate our DNA with CRISPR/Cas system whilst Erik Parens chooses to explore the ethical implications of gene editing:

‘That seemingly simple question takes us to the heart of a deep tension that decent parents have felt for a very long time, but that will become ever more intense if a technology such as CRISPR-Cas9 is in fact safe and effective. I refer here to the tension between the ethical obligation of parents to accept their children as they are, and their ethical obligation to shape them.”

Rising wages in China mean that the country is facing growing competition for the title of factory to the world with Mexico also benefiting from its close proximity to the US according to a report from Ana Campoy:

Productivity Adjusted Labour Rates

UNHCR figures put the sheer scale of Europe’s refugee crisis in perspective, with the problem unlikely to abate given conflict in Syria and Afghanistan:

Migrant arrivals via the Mediterranean

If you find yourself in London over the next month, I’d strongly recommend checking out Ragnar Kjartansson’s The Visitors exhibition at the Brewer Street Car Park. A wonderful respite from the increasingly frenetic activity of central London in Christmas shopping mode.

The featured image is a Jessie and Katey mural on Ahui Street in Hawaii for the POW WOW festival.

Thought Starters

Content that has caught my eye recently or got me thinking. I particularly recommend Tim Urban’s article on artificial intelligence.

WeAreSocial provide their wrap up of key digital up of key digital, social and mobile statistics for 30 key global markets as well as regional overviews – a valuable reference source:

Flurry’s mobile statistics point to lifestyle & shopping as growing rapidly in consumers’ use of mobile, providing a stark contrast to the more well established mobile gaming:

Time Spent Mobile

Whilst global tablet penetration continues to grow, we’re seeing a drop in the phenomenal growth rates of earlier years according to eMarketer’s forecast:


Joichi Ito compares and contrasts the development of the internet with bitcoin,  providing a valuable lens in which to understand the fundamentals of the cryptocurrency and how it may develop in the future.

Steven Levy looks at how Google adapted its business strategy to better accommodate an increasingly mobile driven world:

Knowledge Graph structures the world’s information in a vast database. Voice Search incorporates spoken language into Search. Google Now tells what people want to know before they ask. All three, not coincidentally, are tied to Google’s focus on mobile. Though certainly not an exhaustive list, those components — and the way they work together— have helped transform Google Search in the past three years, from a delivery system of “ten blue links” into something almost psychic: a system that doesn’t behave like a computer but an intelligent hive of knowledge that wisely interprets and satisfies your information needs. And it did it all when you weren’t looking.

Benedict Evans similarly looks at how Google adapted Android and Apple adapted iOS to changing market environment and capabilities. Whilst in some respects, their positions are closer now than they were in the past, the companies strategy are based on fundamentally different underpinnings.

Nick Bilton profiles Snapchat Stories and how it fits in to the increasingly diverse range of communication channels available to consumers and particularly teenagers and young adults. Snapchat is looking to sell the service to advertisers, big question is whether it’s asking too much for the service with commentators both for and against.

Microsoft publicly revealed their HoloLens offering, taking the concept of enhanced eyewear a stage beyond Google Glass. It’s a fascinating project although it will be interesting to see if Microsoft does a better job than Google in overcoming consumers misgivings about wearing a computer on their face. Read a first hand experience of using the eyewear over on Wired:

Tim Urban profiles the growth of artificial intelligence, profiling the transition from Artificial Narrow Intelligence to Artificial Superintelligence and the innovations that are likely to enable this:


The Verge highlights the role of British based Gamma Group International in supporting Bahraini regime through spyware enabling the surveillance and hacking of activists digital communications. Given the more insidious uses that surveillance can be put to, I’m not a fan of David Cameron’s proposal for backdoor access to digital communications and also given the damage this could do to the UK’s digital sector as covered by Cory Doctorow.

Raffi Khatchadourian looks at Affectiva’s move to digitally read consumers’ emotions through the tracking of facial expressions. Obvious implications for measuring the impact of marketing communications but it’ll be interesting to see how it gets used for other purposes.

LSE Cities has pulled together a data visualisation illustrating how much population densities vary among the world’s major cities and published in Vox.

City Pop Density

Aaron Sankin looks at racial preferences among users of OkCupid and Tinder which points to biases among different ethnic groups, including among those who typically claim otherwise.

The featured image is mural by Nelio and Simek in Lyon.

Thought Starters

A mixed collection of materials looking at societal trends and the impact of technology on the way we live.

Slate looks at separatist movements in Europe in light of the recent decision by Scotland to maintain its ties with the United Kingdom:


McKinsey’s forecast for the luxury market points to the growing role of emerging economies. Luxury brands shouldn’t count on a free ride though with Chinese consumers proving less receptive to Western luxury brands than in the past according to a report in The Guardian:


In an interview with the Wall Street Journal, venture capitalist Bill Gurley has raised concerns about the ‘burn rate’ of startups and the potential risks of a tech bubble  bursting. We may not see this happen in the immediate future but a correction does look increasingly inevitable.

The Financial Times profiles the emerging FinTech sector and the challenges it poses to the incumbents in the banking and financial services sector.

Bitcoin is one of the technologies that is providing a disruptive force in the financial services sector, with Fred Ehrsam from  Bitcoin wallet provider Coinbase giving an introduction to the cryptocurrency:

GlobalWebIndex figures confirm the commonly held view  that tablets are frequently shared whilst mobile phones are more closely associated with the individual:


Comscore research points to mobile apps taking a dominant role in the time  American’s spend with their smartphones with pointers on the when where and why of app usage:

Mobile App Usage

Results from Shopify points to  50.3% of traffic coming from mobile and just 49.7% from computers among customers using their eCommerce solution. Whilst this doesn’t purport to represent a  statistically sound sample of all eCommerce transactions, it does provide another data point supporting the need for companies to adopt a mobile first strategy:

Mobile Commerce

Code and Theory’s Dan Gardener and Mike Treff call for an approach to responsive design that goes beyond the screen size of device use, encompassing factors such as location, time of day and duration:


The social network Ello launched in March of this year but is now beginning to reach critical mass, with consumers attracted by the promise of a system that isn’t based on pervasive tracking and surveillance. That’s not to say it doesn’t have its critics with Andy Baio pointing out the funding provided by venture capital which may see its more ethical policies watered down with time.


eMarketer figures point to social media taking a growing overall figure and share of UK’s advertising spend, with Facebook dominating brand’s spend on social networks:

UK Social Ad Spending

 GlobalWebIndex figures on Instagram users doesn’t provide any great surprises with steady growth, younger audience and strong indexing among middle and higher income earners:


GlobalWebIndex also provide figures for the often overlooked Viber with 12% of the mobile audience use Viber each month,  providing a valuable reminder of  the diversity in the mobile messaging space.

ReadWrite looks at which countries have the fastest internet with South Korea, Japan and Hong Kong taking the top three places:

Fastest Broadband

Ezekiel J. Emanuel provides a fascinating opinion piece arguing that we should be placing more emphasis on quality rather than quantity of  life. Putting this into a more personal context, he stresses that we would like only palliative rather than curative care after the age of 75:

But here is a simple truth that many of us seem to resist: living too long is also a loss. It renders many of us, if not disabled, then faltering and declining, a state that may not be worse than death but is nonetheless deprived. It robs us of our creativity and ability to contribute to work, society, the world. It transforms how people experience us, relate to us, and, most important, remember us. We are no longer remembered as vibrant and engaged but as feeble, ineffectual, even pathetic.

Mark Buchanan, drawing on Jaron Lanier’s Who Owns the Future, warns of societal problems associated with the internet with the concentrations of power and the disenfranchising of large sectors of society. Another book to add to the reading list.

We’re seeing telecommuting increasingly promoted as providing flexibility to employees with the potential to better combine the demands of work and home, but it’s not a one sided coin. Lenika Cruz provides a personal account of how working from home aggravated her agoraphobia:

To be clear: Working from home didn’t cause my agoraphobia, it just enabled it. As someone who already had latent anxiety issues, I lacked incentive to prove myself wrong about all the imagined catastrophes that could occur if I were “trapped” somewhere. Telecommuting offered me the retreat I craved, but it helped to reinforce my avoidance patterns. And so the agoraphobia blossomed.

The featured image is a DALeast piece that was created as part of the Dunedin Mural Project and found on Arrested Motion.

Thought Starters

A mixed collection of materials looking at societal trends and the impact of technology on the way we live.

The European Commission has released the Sixth Report on Economic, Social and Territorial Cohesion. The title might not roll off the tongue but it provides a broad range of European statistics including health outcomes, the environment, human development, demographics, crime, the economy and education among other things:

Change in Population The Economist has created an index of where the best country to be born is by looking at a range of quality of life indicators. Care to move to Switzerland?

Where to be born

Retale have pulled together an interactive infographic using U.S. Bureau of Labor Statistics data to providers users with the opportunity to see how the activities of different audiences vary by demographic in the US:

Time Survey

JWTIntelligence has pulled together a report looking at changing family structures in the US. Among the trends highlighted is the evolving nature of the nuclear family, growth in solo living, multigenerational and silver families and the rise of friends as part of family type networks:

The Internet of Things has been getting a lot of attention from the technology sector. The Wall Street Journal looks to pour some cold water on things by pointing out the failure to institute common standards as providing devices interacting that aren’t from the same brand:

Without a common software standard, devices will remain locked into what the German industry experts calls “island solutions”– brands that have a portfolio of products that can talk with each other but won’t be compatible with other brands.

The number of apps available to smartphone and tablet consumers keeps on expanding, but the average consumer only users four according to research from Nielsen:

App Usage

The GlobalWebIndex continues to infographics providing a window into global consumers use of digital.  Recent releases have looked at where WhatsApp, Vine and Pinterest are making an impact:


Zeynep Tufekci gives an impassioned defence of Twitter in its current form, pointing to the advantages of surfacing content by the human flock rather than an algorithm:

I honestly doubt that there is an algorithm in the world that can reliably surface such unexpected content, so well. An algorithm can perhaps surface guaranteed content, but it cannot surface unexpected, diverse and sometimes weird content exactly because of how algorithms work: they know what they already know. Yet, there is a vast amount of judgement and knowledge that is in the heads of Twitter users that the algorithm will inevitably flatten as it works from the data it has: past user behavior and metrics.

As Twitter broadens its offering to partners by integrating ecommerce functionality with consumers’ Twitter stream with the  trialling of a Buy now button. Whilst the trial is relatively limited in scope at this stage, we can presumably expect to see it rolling out more widely soon:

Research from AOL Platforms points to Youtube as having an important role in introducing products and closing the sale when compared to other social media:

Purchase Funnel

Facebook’s quarterly earning figures released in July pointed to the company as doing a good job of growing its revenues. Analysis from Neustar suggests this position may well continue given that Facebook’s network offering is proving a leader in terms of reach efficiency and average cost although its position is trumped by ad exchanges in the quality of its audience:

Cost Index Online Advertising

Facebook is looking to be more sensitive to consumers’ privacy concerns with the  launch of its  Privacy Checkup to help users better manage their privacy settings:

A report from PageFair points to a 69% increase in the number of consumers using adblock software in the US, raising concerns that online media may be increasingly threatened by declining ad revenues.

Adobe recently released its U.S. Mobile Benchmark Report providing a range of charts shedding light on how users and marketers are taking advantage of mobile. Among the interesting statistics is the use of GPS location data and use of beacon technology:

Location Data

Another interesting data point to emerge from the Adobe presentation is the flatlining of tablet’s share of page views. This provides further ammunition to some commentators’ arguments that tablets are getting squeezed between phablets (smartphones with screen size between 5.01 to 6.9 inches diagonally) and PCs:

Tablet vs Mobile Usage

The growing importance of phablets is given further credence by Flurry’s recently released figures which point to growing market share and TECHnalysis Research’s forecast for forecasted sales in the coming years:

Unit Forecast by Sales notebooks desktops tablets smartphones phablets
Unit Forecast by Sales notebooks desktops tablets smartphones phablets

Apple’s launch of the iPhone 6 and 6 Plus is likely to provide a boost to its smartphone marketshare.  Samsung on the other hand is likely to find itself increasingly squeezed between Apple above and a growing array of Chinese based manufacturers (Xiaomi, Lenovo, Huawei, Coolpad etc) at the mid to lower end:

Smartphone Market Share

Amazon’s Fire Phone was released with much fanfare in late July but the fact that it’s now dropped the price by $200 suggests it hasn’t been a winner among consumers.

Putting this all in perspective is Benedict Evans’ valuable blog post looking at Amazon’s failure to post a substantial profit despite its large revenues:

Amazon Revenue vs Income

Evans points to Amazon’s willingness to reinvest any potential profits back into the business. Some of these investments aren’t going to be an immediate success, but others such as the Kindle have enabled Amazon to gain a market leading position:

Amazon Profit Model

Reddit gets strongly criticised by T.C. Sottek following its failure to take action on the release of nude celebrity photos:

Reddit, he wrote, is “not just a company running a website where one can post links and discuss them, but the government of a new type of community.” So, then, what type of government is Reddit? It’s the kind any reasonable person would want to overthrow.

Tim Harford looks at how we can improve our forecasting, pointing to better understanding probabilistic reasoning, working collaboratively and being open minded as key contributors:

Masha Gessen looks at how the Russian population is being squeezed between declining birth rates and falling mortality rates, pointing towards a loss of hope as a key contributor:

If this is true—if Russians are dying for lack of hope, as they seem to be—then the question that is still looking for its researcher is, Why haven’t Russians experienced hope in the last quarter century? Or, more precisely in light of the grim continuity of Russian death, What happened to Russians over the course of the Soviet century that has rendered them incapable of hope?

The featured image at the top of the page is a PARKER by GoddoG and DelwooD in Biarritz and found on GoddoG’s Flickr stream.

Thought Starters

A mixed collection of materials looking at societal trends and the impact of technology on the way we live.

We’re seeing a rapid growth in some of the developing world’s major cities as rural populations migrate in search of better economic opportunities. Joel Kotkin takes a critical look at this phenomenon, pointing out that there in many cases isn’t the necessary demand needed for unskilled labour that will lift these populations out of poverty:

Here’s the difficult truth: Most emerging megacities, particularly outside of China, face bleak prospects. Emerging megacities like Kinshasa or Lima do not command important global niches. Their problems are often ignored or minimized by those who inhabit what commentator Rajiv Desai has described as “the VIP zone of cities,” where there is “reliable electric power, adequate water supply, and any sanitation at all.” Outside the zone, Desai notes, even much of the middle class have to “endure inhuman conditions” of congested, cratered roads, unreliable energy, and undrinkable water.

Research from  Betsey Stevenson and Justin Wolfers points to money being able to help buy happiness, with this correlation appearing not to even tail off for more wealthy consumers:

Life satisfaction and income

There has been a lot of talk about disruption, particularly from Silicon Valley with commentators pointing to the threat this process poses to market incumbents. Research from Ian Hathaway and Robert Litan looks to pour some cold water on this view. Among the research’s finding are  that the US is seeing a declining number of start ups which are faced with growing failure rates whilst older enterprises are taking up a growing share of the overall number of businesses:

Companies by Age

Jamil Anderlini reports on growing property prices in China with warnings of a property bubble.  This could have serious negative effects on the country’s economy. A frightening prospect given the size of the country’s population and economy and the role on effect for the rest of the world:

Property Price Comparison

Benedict Evans looks at the impact that mobile is likely to have on the World’s population, with its impact reaching well beyond the developed world consumers associated with the PC driven internet:

Global Adult Population

There’s been a fair bit of noise recently about the declining role of the tablet with lacklustre sales and phablets arguably providing a good enough solution for many consumers. In response, Walt Mossberg jumps to the tablets defence, arguing that there are enough use cases to ensure that the format will see continuing success in the coming years:

I believed then, and now, that the success of the iPad depended not on whether it would wholly replace the laptop, but on whether it could be the best, or most convenient, computer in enough common scenarios for which the laptop (and, to a lesser extent, the smartphone) had been the go-to choice.

Android continues to be the dominant mobile operating system among global consumers market share. Despite this, Semil Shah argues that the development of an Android mobile app should run a distant second for the majority of startup businesses:

The common wisdom used to be iOS first, Android second — but I think it needs to be amended right now to the following: “With the caveat there may be a small handful of apps which need to be on Android early, mobile startups should be iOS first (of course) and resist the urge to make Android second too soon.” For a product early in its life cycle, the return on investment often can’t be justified.

Pew Research’s work points to consumers as being less willing to discuss serious issues via social media when compared to other social channels leading to what they’ve dubbed the ‘Spiral of Silence.’

Social Debates

Competition is hotting up in the ride sharing business with Uber recruiting drivers from its competitor Lyft – a not unusual practice in a competitive market. What Farhad Manjoo points out is that despite the best effortsof Uber and Lyft, there’s little in the way of differentiation between the two which face serious risk of commodification.

 The Atlantic profiles Google’s experiments with drone delivery suggesting that Amazon’s well publicised forays into this area weren’t simply a publicity stunt. Whilst the technology is interesting, what I found most interesting was the argument that this would enable a move towards a more access based society

Those ideas, in turn, became key planks in the original conception of the “sharing economy,” imagined as one in which the world could make much less stuff because efficient, digital logistics would let each asset be used by more people.

“It would help move us from an ownership society to an access society. We would have more of a community feel to the things in our lives,” Teller preached.

In the ‘something to look forward to’ basket is Juno director Jason Reitman’s Men, Women and Children which looks like taking a less than flattering look at the role of technology on the way we live our lives.

The featured image at the top of the page is a piece by by Paulo Arraiano in Djerba, Tunisia and found on StreetArtNews.

Thought Starters: Content that has got me thinking 17

A lot of noise is being made about the rapid growth of ecommerce and the  effect this is having on bricks and mortar retail. Forrester analyst Sucharita Mulpuru provides an alternative view,  pointing to the continuing growth in the traditional retail sector and the need to distinguish between retailers making the right (and wrong) decisions.

Geoffrey Moore gives a rather sobering view on the effect that technology is having on America’s middle class and suggests some potential avenues to address this.

Marc Andreessen is interviewed in the Washington Post providing commentary on the impact of revelations on NSA surveillance, net neutrality and bitcoin. His commentary on the latter is particularly interesting and marks out why Andreessen Horowitz are investing heavily in the sector.

E-commerce would’ve gotten built on top of this, instead of getting built on top of the credit card network. We knew we were missing this; we just didn’t know what it was. There is no reason on earth for anybody to be on the Internet today to be typing in a credit card number to buy something. It’s insane, because — which is why you have all these security problems, the Target hack and all this crazy…. And these high fees, this high fraud rate. It doesn’t make sense online to have a payment mechanism that requires you to hand over your credentials to make a payment. That’s just an invitation to fraud and identity theft. It’s just stupid.

But we didn’t have the better way of doing it. So we didn’t know what else to do, and now we have the better way of doing it. Now, it’s going to take time. We’re quite confident that when we’re sitting here in 20 years, we’ll be talking about Bitcoin the way we talk about the Internet today. We just need time for it to play out.

Moving customers over to a subscription model of payments may provide companies with a valuable regular income stream but Brian S Hall points out that this is   not necessarily in the consumer’s best interests.

Timothy B Lee looks at the New York Times’s Innovation report which identifies new disruptive players, but also suggests that the organisation like many incumbents is poorly placed to meet the challenge of new entrants.

Game Oven recently wrote a piece looking at the difficulties in writing software for Android given the fragmented hardware and software environment. Benedict Evans built on this post , pointing to the problems of Android fragmentation but also suggesting that the movement to a more cloud based environment may alleviate many of the current problems associated with developing for Android.

Deloitte has released its latest Media Consumer report looking at changes in media consumption patterns in the UK. Among the areas covered are device ownership, television consumption, trust in journalism, use of social media, cinema viewing, gaming and streaming of music.

Percentage of households that have at least one of these devices

 Julie Ask looks at the role of disintermediaries in an increasingly mobile centred environment, with social media, mapping, entertainment, commerce and payments growing in strategic importance.

Today, a third crop of platforms are laying the groundwork to step into the powerful position of “owning the customer,” by serving them in mobile moments. Consumers expect to be able to get what they want in their immediate context and moment of need. They will reach for their phone for information and services. The issue is, most brands aren’’t yet there for their customers in this moment, challenged to even get customers to visit their mobile website or download the brand’s mobile app.

That’s where the platforms that dominate minutes of use, such as popular messaging and social media apps, come into play. It’s not hard to imagine a future where a small set of highly contextual and curated disintermediaries offer consumers a portal to the universe of services on mobile devices. Companies should consider the possibility of a future where their access to consumers is through this small set of disintermediaries

JWT Intelligence has a look at the mobile payments sector which is encumbered by the chicken and egg scenario. Consumers won’t use a service if they’re not familiar with it but retailers won’t invest in a platform if it’s not widely adopted. Efforts are being made to increase adoption and Apple is a potentially disruptive player waiting in the wings.

A growing amount of attention has been given to the mobile messaging sector lately, particularly in light of Facebook’s recent acquisition of WhatsApp. Line and WeChat are similar (provide text and photo messaging but different from the more traditional mobile messaging players  with Mark Bivens and Jerry Yang comparing the two Asian powerhouses on Bivens’ blog.

I am a strong believer that we will see some version of enhanced eyewear make inroads in the future  but Matt Lake’s review points to  Google Glass being some way from the medium’s end goal.

There’s been a lot of talk lately of a cooling in tablet sales with commentators suggesting that the smartphone can more than adequately fulfill many of the use cases. Providing a counterpoint to these suggestions is research from Flurry which point to growing usage by tablet owners.

Tablet usage

Matthew Yglesias looks critically at the content that Facebook looks to share among its users following Director of Product at Facebook’s recent rant about the state of the media.

Relationship status is one of those sensitive areas that users aren’t always willing to make public on Facebook. In an attempt to overcome consumers’ reluctance (and provide another data source), Facebook is providing consumers with the opportunity to directly ask fellow users what their current relationship status is.

Relationship Status

Facebook has added song and television show identification (à la Shazam) to its iOS and Android app, providing the opportunity to further enrich its collection of consumer data.

Facebook Music and TV Id

Whilst digital technologies such as HTML5 and WebGL are enabling a richer array of experiences online, the majority of online spend is still very much on direct response advertising in the US according to eMarketer figures.

Digital Ad Spending ShareThe featured image is Reliefs by Evgeniy Dikson


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The Next Web charts the inexorable rise of HTML5 as Flash becomes increasingly marginalised in a multi device world.

Jean-Louis Gassée looks at the role of the iPad as its growth slows and a role which is arguably stuck in the no mans land between smartphone and PC.

No longer charmingly simple, but not powerful enough for real productivity tasks. But if the iPad wants to cannibalize more of the PC market, it will have to remove a few walls.

Juan Pablo Vazquez Sampere argues that high-end disruption has a much lower chance of success than low-end disruption, and lays out some preconditions for where its more likely to be successful.

Drawing on the topic of disruption is Benedict Evans’ where he explores  situations where innovations and changes in market conditions enable ‘unfair’ competition.

An unfair comparison generally means an unfair advantage, and this isn’t the Olympics – unfair is good. Customers don’t care if a company’s advantage is unfair. Investors don’t care. Unfair advantages are often the best kind. 

Sameer Singh looks at the changes that Project Ara‘s modular view of smartphone could bring to the smartphone sector, providing a disruptive force within the smartphone market.

Project Ara scattered parts

Horace Dediu explores the concept of innovation, contrasting it with novelty, creation and invention.

The Atlantic explores changes to employment in the American retail sector which is being turned on its head by the movement to large format retail stores and the growth of ecommerce.

For consumers, there’s never been a better time to buy stuff. It’s not such a happy story for the people on the shopping floor and behind the counters.

Simply Business provides an interactive infographic looking at Apple, Amazon, Google, Yahoo and Facebook’s acquisitions over the the last ten years.

Hungry Tech Giants

Needing to polish up your social media guidelines? The UK’s Government Digital Service has just released their Social Media Playbook, which should make a good starting point.

Robert Newman in conjunction with other commentators looks at the mixed performance of app based digital magazines and the opportunities provided by digital magazines in the future.

Mindy McAdams explores emerging forms of digital journalism online, that includes reference to examples from the Council on Foreign RelationsDigital First Media, NPR and National Geographic.

Whilst we are on the subject of digital journalism, it is worth exploring Bloomberg’s How Americans Die which uses interactive infographics to explore mortality and its causes in the USA.

How Americans Die

Vision Critical and Crowd Companies infographic looking at the collaborative economy. You can find more detailed coverage in their report Sharing is the New Buying.

A Taxonomy of the Collaborative EconomyDavid Hepworth argues that the power is shifting from content creators to digital distribution platforms in the news, music and entertainment industry.

In responding to this traditional media owners are having to recognise that content in itself is not enough.

GfK looks at the newspaper industries exploration of different strategic options as audiences move increasingly online. The Blizzard, The Sun and the Financial Times are held up as interesting examples of brands adapting to new environments.

Angus Steakhouses are seemingly imprevious to London’s culinary renaissance. The Independent explores their continuing success despite the increasingly refined tastes of London residents.

George & Jonathan provide a data visualisation of a different kind, bringing their music to life.

George & jonathanThe featured image is a Stohead mural in Linz, Austria found on StreetArtNews.



The following provides a roundup of some of the articles, thought pieces and content which have got me thinking recently.

The startup sector continues to get a lot of attention in the news media, positioning itself as an engine of innovation. A contrary view is given by Mariana Mazzucato in The Economist who points to mid and larger sized enterprises as being stronger drivers. Am not sure this gives a full reading of the situation, but its an important reminder that innovation isn’t monopolised by any one part of society.

Jana Mobile  point to various developing markets as evidence that Windows Phone has a potentially viable opportunity  as a third smartphone operating system. Beyond Devices takes a much more bearish view, pointing to the growing stranglehold that Android and iOS have over the smartphone market.

The challenge for new mobile operating systems

Zal Bilimoria suggests in re/code that we may be moving towards a post tablet world as consumers look to consolidate around PCs and phablets.  Too early to tell, but an interesting hypothesis.

It has been interesting watching the changing tone of conversation around Chromebooks as better hardware and improved web services make the platform ‘good enough’ for an increasingly large population of users. Cases in point are David Gewirtz’s recommendation for civilians and Andrew Cunningham’s more luke warm review for users with greater  technical requirements. TechWorld points out that Chromebook remains an outlier in the enterprise sector, but it is beginning to emerge as a realistic alternative for some.

WeAreSocial have released a valuable presentation looking at some of the key social and mobile metrics from Europe that goes well beyond  the EU5.

The appointment of Satya Nadella as Microsoft’s CEO and the emergence of Bill Gates from behind the curtains has prompted a lot of commentary on the company’s current fate. Tech.pinions is among the more positive commentators but a gloomier view is head by John Gruber (never a Microsoft fan at the best of times). It’s also worth reading Ben Thompson’s commentary on the reemergence of Bill Gates at Microsoft.

The media sector has taken a bit of beating lately with many organisations hit by declining print advertising and sales with online revenues failing to fill the gap. Marc Andreessen sees a rosier picture with plenty of opportunities with new business models emerging.

McDonald’s has taken a lot of flak over the years over the quality of its food. Given potential consumer misgivings, so it’s interesting to see McDonald’s adopt a more  transparent attitude towards the products it sells…definitely not something to file under food porn. More information over at AdWeek.

If you are in London this weekend and prepared to brave the gale force winds, Phlegm’s show at the Howard Griffin Gallery is well worth a look. The featured image at the top of the page comes from Marcus Peel’s photography of the show which can be found on Phlegm’s blog.