While consumers express some interest in 3D TV they may not be running out to purchase a new TV set just yet, according to The NPD Group.  NPD’s “Snapshot Report: 3D Television” found that about a third of consumers were at least “somewhat interested” in having 3D capability on their TV, but cost, content availability, and convenience of watching in 3D ranked high among concerns about adopting the technology.

The cost of a 3D TV and the cost of getting 3D content on their TV were concerns for more than 60% of consumers.  Having to possibly pay more for 3D content from their television provider was perceived as a potential downside of 3D TV by 64% of consumers, and 61% were concerned about 3D adding significant cost to the price of a TV.  In addition, the limited amount of content available was sited as a concern by 39% of consumers.

Cost and convenience also came into play in terms of the glasses that major manufacturers will require for viewing 3D content. The inconvenience of wearing 3D glasses was sited as an inhibitor for 53% of consumers. 3D glasses would also add on to the cost of viewing 3D content.

“Manufacturers are counting on 3D to accelerate the replacement cycle the way HD did,” said Ross Rubin, executive director of industry analysis at NPD.  “Early adopters will look past significant price premiums and limited optimized content in the name of bringing home even more of the cinematic experience as they find 3D capabilities included among other premium features.”

DisplaySearch, an NPD Group company, expects 1.2 million 3D-capable TVs to ship in 2010, with that number growing to 15.6 million in 2013, according to their Quarterly TV Design and Features Report.

“Snapshot Report: 3D Television,” conducted by The NPD Group.  Web.  25 Feb. 2010.

It’s official. The new must- have toy is a personal navigation device.  Recently published Forrester Research data indicates that 31% of U.S. consumers use navigation systems. The most common type of system is located in a car or on a mobile phone.  Growth rates in 2008 suggested that consumers may increasingly prefer a mobile phone application for navigation. In 2008, growth rates occurred as follows:

• Portable navigation device: 8%
• Phone-based solution: 49%

In 2009, the number of fixed (in autos) navigation devices sold dropped 9%. However, this decrease was actually a less severe drop than those experienced by other car electronics categories such as in-dash CD players (-12%) and power amplifiers (-27%). In addition, the number of portable navigation devices sold in 2009 dropped 23%. These decreases may partially be explained by the general slowing of auto sales in the U.S. in 2009 and the overall effects of the recession.

Consumers are clearly interested in turn by turn directions as they travel. Traditionally, products like TomTom and Garmin have enjoyed solid market shares and they have been updated to include features such as tracking traffic information via mobile connections. But the market for navigation systems may be about the change. Jason Ankeny, writing for Fierce Mobile Content, notes that Google Maps, combined with Android 2.0, is being offered for free and supported by ads.

The future of the personal navigation industry may well rest on who can provide the service that connects best with consumers. Either way, vendors will be marketing these products and services in an attempt to maintain or increase market share.

[Sources: Gilroy, Amy. GPS Consumer Penetration. TWICE. Fall 2009;  Car Electronics Sales by Category, TWICE, December 2009; Ankeny, Jason. Navigation applications will shift, Fierce Mobile Content. 1.4.10]

System management software vendors hope 2010 will be the year that more corporations begin spending to upgrade their business software. During the recent period of slow sales, new products were introduced to the market. According to KACE, a leading systems management appliance company, several of these new products may speed up purchase decisions by managers who hold the purse strings at both large and small enterprises.

Here are a few of the key developments that may lead to more business investment in software:

• The failure of Microsoft’s Vista operating  system and the growing appeal of Apple technology may lead to a doubling in market share for the Apple OS.
• Virtual desktop technology may be outpaced by the new virtual composite workspace technology.
• Hybrid cloud and on-premise enterprise solutions will grow faster than pure cloud computing because of data privacy issues.
• Companies may invest more in desktop and laptop hardware that is configured with lower energy use requirements.
• Multiple vendors, each with unique operating systems, are competing in the mobile marketplace battle. Until this battle is resolved, device management in the enterprise will become increasingly complicated and expensive.

Whether a company is selling a virtual desktop solution, a new way to address security concerns, or ‘green-friendly’ systems, it seems that higher marketing budgets are in order for 2010.

[Source: KACE release, January 13, 2010]

Technology experts believe the next industry transformation will occur in the mobile Internet segment. Morgan Stanley analysts expect this segment to possess the transformative power that accompanied other major tech launches such as Microsoft’s Windows 3.0 or Apple’s iPhone. The business environment is a bit different this time around but large fortunes will be won and lost as giant companies battle for market share and revenue.

According to Morgan Stanley analysts, the unique features of the mobile Internet segment (as compared to other recent tech transformations) include:

• Faster growth rate
• Faster adoption rates (including globally)
• U.S. has emerged as  a global leader
• Young but experienced business leaders are driving the trend

Three types of businesses own the mobile Internet industry:

• Infrastructure – Semiconductors, wireless carriers, wireless equipment/services
• Platform – Key players include Apple, Facebook, Skype
• Applications/Services/Content – Mobile operating systems, commerce systems and app creation tools

Revenues will be generated from a number of sources but Morgan Stanley analysts believe that the mobile Internet revenue mix will include more advertising in the long term. In 2007, advertising comprised 1% of global mobile Internet revenue. By 2013, the revenue mix should resemble the following:

• Advertising 3%
• Paid services 5%
• Mobile eCommerce 13%
• Data access 79%

Mobile Internet advertising spending is expected to increase because marketers will direct their budgets to media formats that have the most consumer attention. The Morgan Stanley study puts the following numbers in place when comparing time spent by U.S. consumers on various media formats to the corresponding percentages of advertising spending:

• Consumer media time spent on print publications 12%
• Advertiser budgets on print: 26%

• Consumer media time spent on radio: 16%
• Advertiser budgets on radio: 9%

• Consumer media time spent on TV: 31%
• Advertiser budgets on TV: 39%

• Consumer media time spent on Internet: 28%
• Advertiser budgets on Internet: 13%

For now, advertising accounts for 40% of revenues generated by the top 50 global Internet companies. It is not clear which of these companies will emerge to become key players in the mobile Internet world.  But as more consumers  adopt this media channel and at a faster rate, marketers will  adjust their media mix to avoid being left behind. It’s easy to see that advertising could quickly become a main revenue component for these businesses within the next few years.

[Source: Mobile Internet Report, Morgan Stanley, December 2009]