ABOUBAKAR ASSIGNMENT 1: October 2013

Five key trends predicted for 2013

http://techland.time.com/2012/12/31/10-tech-industry-predictions-for-2013/

1. Samsung will invest in its own future

Right now, Samsung is the most dominant Android smart-phone manufacturer. However, the company does not fully control or dictate the directions or agenda of Google as it relates to Android. Because of this, Samsung is dependent, to a degree, upon Google for future success. In a quickly verticalizing industry, this is a point of concern for Samsung. Samsung once invested in its own Bada operating system, but I believe it will further invest in owning its own software platform in order to fully unify its screen strategy. The most logical candidate is the Tizen operating system Samsung has been working on but has yet to release.

2. Microsoft will get into smart-phone hardware

Microsoft signaled its intent to be a PC hardware company when it launched the Surface tablet. By doing so, Microsoft strained relationships with its existing hardware partners and went down a path that is hard to turn back from at this point. The next logical step is for Microsoft to get into the smart-phone hardware business — or acquire a company like Nokia or HTC — and begin controlling the hardware for the Windows Phone platform. I believe Microsoft will officially get into the smart-phone hardware game in 2013.

3. Apple will make a large investment in its supply chain

In the personal-computing landscape, Apple is more vertical than any company right now. Others have some of the parts but have yet to go fully vertical and show that they can execute as vertical companies. Apple has already proved it is a well-oiled vertical machine, and I believe the company will further invest in that strategy by using its massive stockpile of cash to purchase key parts of its supply chain. The main reason for this will be not only to maintain its hardware margins but also to relieve many of the supply-chain bottlenecks that Apple deals with on a yearly basis. These investments could be things like owning a key display manufacturer, owning hardware-machining factories and even investing or co-investing in a foundry to manufacture its own semiconductors for all its computers.

4. Google will go fully vertical with Motorola

Samsung is Google’s largest partner, and in many of the same ways that Samsung depends on Google, so too does Google depend on Samsung. The reality is that Android would not have the market share it does today without Samsung. So by Samsung investing more in its own future with a software platform, Android will be weakened. The only logical response is for Google to also officially go vertical with its Motorola purchase, taking its hardware future into its own hands. Google can do this by focusing Motorola on the high end with a Nexus-like strategy, or it can focus on the lower end by going for more volume than margins. I can see either scenario playing out

5. RIM will make a modest rebound but will eventually be acquired

To be entirely honest, I have some hope for RIM. I do think the company will make a modest rebound in 2013 with the release of its BlackBerry 10 devices. But to take back a significant share of the handheld market, RIM will need help from someone else. It makes the most sense in my mind for RIM to consolidate with a company that has the right marketing and a solid hardware vision. Perhaps Samsung could acquire RIM and make BlackBerry 10 its proprietary operating system if Tizen doesn’t work out. Any number of the growing Asian OEMs that could use better business platforms may show interest in RIM as well.

Social Media trends for 2011/2012