BEAM ME UP SCOTTY

Picture courtesy of Google

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BEAM ME UP SCOTTY

PC companies like Dell  need to do some serious morphing and think of the PC as more of a hybrid, because the PC of 2030 –and beyond – will be a computer, a personal assistant, microphone, and  an ear piece, which will talk to a “virtual computer  in the cloud”.

This is according to Christopher Riley,CEO of The Notebook Company, the Pretoria-based notebook and accessories retailer. “Ultimately, “he said, “is that users will have access their own virtual PC in the cloud.”

He said the user would access, and store, everything in the cloud – including diary schedules. “Right now the PC already equates to a PC, a laptop and a smartphone. The blurring of the lines will get more and more blurred- and increasingly rapidly,” he said.

If a user wants to access his diary to check his meeting schedule for the day he will verbally engage with his “PC” and ask:”Susan, what is my diary schedule for the day?”. Then Susan, or Sue, or whatever the user wants to use as a nickname,  the virtual PC in the cloud will reply.

“Susan,  Sue, or Siri, will be like an artificial intelligent assistant (AIA)- and this is looking more and more like the future PC.  This scenario,”said Riley, “is also not that far off”.

“Maybe we should call our AIA Scotty, like Scotty from that iconic science fiction movie from the 1970s, STAR TREK? And say: ‘beam me up Scotty’ ’’Riley quipped.

Large increase in the prices of laptops and tablets threatening as Rand dives to its weakest level against the dollar in four years

The Rand is at its weakest level against the dollar in four years - and while this might be good news for South Africa’s export and manufacturing industries - this could well play havoc with prices in the computer industry, with at least one laptop retailer, The Notebook Company, saying that prices of laptops and tablets are likely to rise by 10%.

The Rand has pressed through the physiological R10 to the dollar exchange rate for the first time in four years, sparking fears that technology companies sourcing their products in dollars would have to institute increases.

“With the weakness of the Rand, we can no longer absorb our higher dollar-based costs. We will have to start increasing prices, immediately, and the price increases could be as much as 10%,” said Christopher Riley, CEO of  Pretoria-based laptop and accessories retailer, The Notebook Company.

“We have been trying to absorb the currency hits, but this is no longer possible,” he said.

He said Apple iPads account for a high percentage of sales at The Notebook Company, so the need to increase prices by as much as 10% was “not a decision taken lightly”.

It is expected that many technology companies – certainly those who deal  in dollars – are going to have to increase prices, across the board, said Riley.

“Few companies will be able to absorb the weakness of the Rand – and this, too, might not be an overnight thing.”

Google’s Android tablets set to overtake Apple iPad says The Notebook Company

The tablet market is arguably one of the most fiercely competitive marketplaces in the world, with a number of the world’s biggest companies fighting for market share. But, while Apple iPad has been the clear leader since the tablet market started in full force in 2010, its lead is about to be eclipsed by Google’s Android devices.

This is according to Christopher Riley, CEO of Pretoria-based notebook and accessories retailer, The Notebook Company – and one of South Africa’s leading sellers of Apple iPads.

“We are seeing some pretty distinct market shifts and Apple’s heydays as the hands-down leader in the tablet market seem numbered,” said Riley.

IDC has already reported that shipments of tablets running Google’s Android operating system will surpass Apple this year for the first time. “There are a growing variety of smaller and cheaper Android-driven tablets from Google to Amazon.com, which are really becoming increasingly popular with consumers.  It’s not just the tablet market where Apple seems to be losing traction,” said Riley.  “Samsung, arguably Apple’s biggest rival, is coming to market with a slew of tech-savvy and funky  tablet and iPhone solutions, which are starting to take a bite of Apple’s market.”
Samsung’s fourth generation of its flagship Galaxy is about to hit the market and it is this range of smartphones that knocked Apple off its pedestal as the world’s number one supplier for part of last year.
“There is a lot of market anticipation for the new Samsung Galaxy,” said Riley, “and we could very likely see more inroads this year.”

While Apple might be facing more competition, Riley said he still believes that iPad sales will be the main contributor to The Notebook Company’s total revenue for the year. “For the past two years Apple iPad sales have been our main sales line.

" This is changing and, therefore, we are also offering a wide range of Android devices. We are also suggesting big name brands  when clients are looking at Android devices. We have offered low-end no-name tablets before, but we always warn clients that it is a case of ‘you get what you pay for’” 

In the meanwhile, the shine seems to be coming off Apple, with its share price being the first to show this – losing more than one-third of its value since hitting a high last September.

Microsoft’s Surface tablet will lift the level of competition in the local tablet market – but will it sell much?

Microsoft’s long-awaited – and much-touted – Surface tablet is due to hit South Africa’s shores within the next few months and, while it is expected to lift the already high level of competition in the tablet market, sales are unlikely to be huge, said Christopher Riley, the founder of Pretoria-based notebook and accessories retailer, The Notebook Company, one of the biggest sellers of the Apple iPad.

Riley said Apple is currently facing elevated competition from Android-driven tablet devices – which are generally cheaper than the iPad – as well as from an invigorated Samsung, whose tablet sales have risen meteorically in recent months.

“Apple’s share of the global marketplace has fallen from 51,7% to 43%, while Samsung’s has doubled from 7,3% to 15%. The arrival of Microsoft’s tablet in South Africa isn’t going to make a huge impact. Microsoft has lost too much traction over the last three years and the entrance of the long-awaited Surface is just that – it is long-awaited. It is late – and Microsoft has arguably lost its chance to become a core player in the tablet market.

“It is being touted as a great tablet from a price/performance perspective. Of course, time will tell. But I don’t believe they will be big sellers locally.”

Commenting further, Riley said that while Apple iPad sales still account for the lion’s share of the company’s revenue, sales have dropped in recent months as other tablets become more popular, including the Samsung devices.

The  Microsoft Surface will be available in both Windows 8 Pro and Windows 8 RT (run time) versions.

Samsung takes a chunk out of Apple – The Notebook Company

Apple, the incumbent “king of the tablet”, is under threat from Samsung as it saw its slice of the worldwide tablet pie falling from 51,7% to 43,6%, while Samsung’s spurred upwards from 7,3% to 15%.

It might not yet be time to worry, but, according to Christopher Riley, the CEO of Pretoria-based notebook and accessories retailer, The Notebook Company – and one of the largest sellers of Apple iPads -  Apple’s heydays in the iPad market “might well be over”.

“They are certainly not down and out, buy there is certainly increased completion of late, including a big jump in popularity by Samsung – and an increase in competition from Android-based tablets.

“The importance of recent sales statistics – as gleaned from MIRROR NEWS – show that Samsung’s market share has effectively doubled, while Apples has declined. These are the facts on the table right now. It also seems certain that Samsung will further increase its market share as the year progresses.”

Sales of Samsung Galaxy tablets made the 7.9 million mark in the last quarter of 2012, compared with just 2.2 million in the entire 2011 – according to research firm IDC.

“There is a strong move upwards,” said Riley. “even though Apple is still the best selling tablet, with a comparative sales figure of 22.9 million.”

Additionally, Samsung’s Galaxy S3 smartphone outsold the iPhone for the first time over the Christmas season, reporting a total of 18 million sales compared to Apple’s 16.2 million.

“All around, Apple is facing more competition,” said Riley.

He added that he is also noticing a “definite swing” towards more sales of Samsung and Android-driven tablets. 

“Apple’s iPads are still our top seller. But we are seeing increased interest in other tablets, something that started during the latter part of last year.”

iPad sales going slower says The Notebook Company

The Notebook Company, the Pretoria-based notebook and accessories retailer – and one of the biggest suppliers of Apple iPads in South Africa – reports that sales of iPads are down 40% for the first two months of the year, compared to the same period last year.

This is according to Christopher Riley, MD of The Notebook Company, who said he had predicted the drop in iPad sales as consumers had over-spent over the festive season and their indebtedness is on the increase. He noted, however, that sales of laptops were only slightly down on the first two months of 2013.

“We were expecting a slow quarter this year. In addition, Apple has introduced a slew of products which has led to a certain amount of confusion in the market. They have also, in a manner of speaking, cannibalized their product range by bringing out too many products perhaps – products that compete for market share.”

He said he expects an improvement in sales during the second quarter, but said he was not expecting any “major upturn” during March.

“We had a very good run with iPad sales during the past three years. They are probably at their lowest point for us right now. We are currently focusing more attention on our traditional line of other branded laptops,” said Riley.

CHINA IS NOW THE BIGGEST SMARTPHONE AND TABLET USER – THE NOTEBOOK COMPANY

China is now the biggest market for smartphones and tablets, said Christopher Riley, MD of Pretoria-based notebook and accessories retailer, The Notebook Company – and one of the biggest suppliers of Apple iPads in South Africa.

“Right now China is reporting the highest number of active iOS and Android devices. Additionally, it is among one of the fastest growing markets in terms of the adoption of smart devices. Obviously, China is a huge market – but it has now also proven that it is a quick adopter of the latest technology,” said Riley.

Until the end of January 2013 the USA came in as the number one smartphone and tablet market with 222 active smart phone devices, followed by 221 million in China. But it is thought that, by mid-February, China nudged ahead of the USA.

“The percentage penetration is naturally higher in the USA due to the population comparisons, but China’s uptake is quite spectacular.”

China has a population of around 1.3 billion people, compared to the USA’s population of about 310 million people.

“Interestingly,” said Riley, “India, with a population of around 1.2 billion people, only has 19 million active smart device users. This points to an affordability issue and the state of the haves and the have-nots in that country, more than likely,” said Riley.

As storage demands increase Apple to bring out an iPad with storage of 128 GB – The Notebook Company

As the demand for more data and storage continues unabated Apple is poised to bring out an Apple iPad with storage space of 128 gigabytes, up from the current 16, 32 and 64 gigabyte versions, said Christopher Riley, managing director of Pretoria-based notebook and accessories retailer, The Notebook Company – and one of the biggest sellers of Apple iPads in the country.

“You would think people would go for less storage, what with the advent of cloud computing and icloud storage capabilities. But it seems, despite the cloud, that people want more storage capacity – hence Apple’s decision to move to market with a 128 GB unit.”

Riley said people tend to “over-buy” frequently and buy computers with features that they don’t often use – “well, not all the features, and certainly not all the capacity”.

“This,” he said, “seems to be a continuing trend. But, with the rapidly increasing demand for more and more data, storage space is becoming a concern. Rather than look to the cloud, consumers are still wanting this capacity directly from their equipment.”

Riley said storage space on tablets could reach 1 terabyte within the next three to five years.

Too many Apples a day – or on the market – cause confusion says The Notebook Company

The current infusion of Apple products being introduced onto the market is causing confusion, which, at the end of the day does not auger well for the second most valuable company in the world. Because, when consumers are confused, they are cautions when it comes to buying.

This is according to Christopher Riley, managing director of laptop and accessories retailer, The Notebook Company – one of the biggest local sellers of the Apple iPad tablet range.

“Apple is in danger of confusing the market,” said Riley. “It might be the leading seller of tablets, but the current rash of product launches – and the confusion with iPad tablet names – is not good for business at the end of the day.

“When the Apple iPad 3 came onto the market it was called the New iPad. Then, when the Apple iPad 4 was introduced it was called the New iPad with retina display. But the problem,” said Riley, “is that the iPad 3 – called the New iPad – also has retina display.

“But it doesn’t stop there. Apple, which was dethroned as the most valuable company recently by Mobil Exxon, has also introduced the iPad mini. Some consumers – certainly some of my customers – think this is actually the iPad 4.

“When consumers are confused they tend to halt, or stall, purchase decisions because they don’t want to come across as stupid. Also, the sales cycle is a lot longer because retailers, like ourselves, have to explain things to customers in more detail – or customers have more questions. This extends the sales cycle.”

Apple starts to report slowing profits

Meanwhile,  at the end of last month Apple’s share price started nosing southwards, falling to $439,88 – giving it a market capitalisation of $413 billion (R3.6 trillion), compared to oil behemoth Exxon Mobile, who clocked in with a market value of $418 billion. Apple first superseded Exxon Mobil in August 2011 as the most valuable corporation based on the value of its stock. A year later it toppled arch rival Microsoft as the most valuable firm in the world in history with its stock valued at $622 billion.

But Apple has started to see its inner core bruising after a somewhat dull forecast accompanying its record quarterly profits, which pointed to a possibly less stellar growth.  Despite a record quarterly profit investors got cagey after hearing that gross margins further down the line would be 37,5% to 39,5% lower than expectations.

To get a clearer picture of the more gloomy prognosis  one has to cast one’s mind back to when Apple’s stock price hit more than $700 a share . This was reached in  September  last year, but, since that zenith, the price has dropped by 37% . The company also shed $60 billion in market capitalisation.

The Notebook Company’s Riley said some market analysts are postulating that Apple is losing its edge due to a dip in innovation since the death of co-founder Steve Jobs. There are also tangible  signs that it is losing traction to Samsung, which now leads the smartphone market, and to others using Google’s Android operating system.

Despite Apple’s stellar performance in the past it is questionable whether it will be able to maintain the margins it is accustomed to. With the possibility of smartphone price wars Apple’s traditional market positon of holding the high ground with premium products aimed at the high end of the market may bite deeper and deeper into profits from each device sold.

“But although Apple is receiving some negative press currently, it must be remembered that the tallest trees attract the most wind velocity. Apple has reached such heights these past few years that the wind velocity they are encountering is pretty fearsome.

“But Apple is by no means rotten to its core,” Riley quipped.

Demand for laptops will be muted during the first quarter of 2013

Demand for laptops will be weak  during the first quarter of the year, and this is not only because of the market share being stolen by tablets, said Christopher Riley, managing director of laptop and accessories retailer, The Notebook Company – and one of the biggest local sellers of the Apple iPad tablet range.

Riley said it is “important to remember” that laptop demand – not counting netbooks – was already moving downwards before the tablet industry caught fire.

“Apple’s iPad, the soon-to-follow Android and Windows slates and, more recently, Windows RT tablets, are simply acting to aggravate these already existing problems.”

Riley said it appears that the general consensus among market watchers is that first quarter of 2013 will not witness an upsurge in laptop demand. In fact, he said, it could be an ever less lucrative quarter for notebook markets than usual.

“Generally, the first quarter of the year is a slow season due to the fact that many people are still recovering from the spending sprees of the festive season. Adding to the challenges, this year notebook vendors will have to content with Windows 7 notebook oversupply, pressing many to offer as many price cuts as is possible. Installing Windows 8 on units will help somewhat, but it must be remembered that many owners of Windows XP/Vista and 7 systems are probably not yet ready for performance upgrades. They might even opt to buy a new phone or a tablet instead of a PC.”

But Riley said that while there will be pressures on laptop sales, the popularity of tablets will continue. “Apple iPads will continue to outsell our range of laptops during the first quarter of this year,” said Riley, “and, frankly, I see this continuing into the year.”

Apple faces increasing competition in the tablet market

Apple has remained as the leading player in the tablet market since its debut with the iPad two years ago, but the company – now the most valuable company in the world – could very well lose its market share to Google-based Android devices.

This is the opinion of Christopher Riley, MD of The Notebook Company – one of the country’s leading notebook and accessories retailers – which also runs the on-line sites Laptop.co.za and Notebook.co.za.

Riley said Apple is losing market dominance “fast”, one must also keep in mind they had all of it initially.  The third quarter of 2010 saw the iPad securing 87% of the market. Now Apple commands just over 50% of the market. “The release of the Apple iPad Mini has also affected sales of the iPad. There has been a lot of hype surrounding the iPad  Mini and many people put their purchase decisions on hold, waiting, instead, for the arrival of the mini tablet from Apple.

“In a way Apple seems to have shot itself in the foot with the launch of the mini Apple tablet, certainly as far as a diversion of consumer spending is concerned. But even with the fall-off of iPad sales, Apple will still remain very dominant in the tablet market. But it will share market leadership with Android-driven devices, and we can all agree Tablets are here to stay”

Apple’s mini iPad will fly off the shelves in South Africa says The Notebook Company

There has been a lot of pre-launch hype with regards to Apple’s mini iPad – as
there was with the Apple iPhone5. Much of the excitement – when the products
were actually launched – had already dissipated due to all the pre-press hype.
Nonetheless, these two products are sure to fly off the shelves around the world,
re-affirming Apple as the number one technology company in the world.

This is according to Christopher Riley, MD of local notebook and accessories
retailer, The Notebook Company – and a big supplier of Apple products.

Riley said said his company will be selling the iPad mini at between R5000 – R8
000, with stocks accepted to arrive in early November.

“The Apple iPhone 5s have been flying off our shelves and we have been battling
to keep up with the demand – and we are expecting no less of the Apple mini
iPad,” he said.

Riley noted that there would still, however, be a sustained market for the iPad 3
and iPad2s. “Demand has muted somewhat, but they are still stalwart sellers.”

Commenting further, Riley said the 7-inch mini iPad from Apple is viewed by
many market watchers as an attempt by the technology giant to combat – and
“beat-out” – competitors in the fast-exploding 7 inch tablet market.

“It is war out there,” said Riley, “but Apple still has a keen edge. Right now the
company has the Midas Touch and although they are allowing more hype to
permeate the market prior to launches – something they did not do in the past –
their products seem to be hitting the right buttons with users. Apple is just the
product users want.

And the winner is – the Apple iPad

The iPad tablet from Apple is still the most popular tablet on the market – by far – and even the iPad 1 is on the wish list of some consumers before other new releases from Apple competitors, such as Samsung, Acer, HTC and Google.

This is according to Christopher Riley, CEO of laptop and accessories retailer, The Notebook Company – which manages the Laptop.co.za and Notebook.co.za online retail sites.

Recent research shows that there is actually a low level of consumer consideration and expectation levels for a non-Apple brand, with more than 75% of ‘hot prospects’ (respondents that are keen to get a tablet) considering purchasing an iPad 2- and a further three in five people expecting to get one.

“Interestingly,” said Riley, “the next most popular tablets are actually out-of-date – and that would be the original iPad, the iPad 1, and the Samsung Galaxy tab. Both tablets scored a yes vote of just over 10% of those polled, who are  expecting to buy one”

According to research conducted by YouGov other tablet competitors – like HTC, Blackberry and Acer – do even worse.

While 77% of those ‘hot prospects’ polled appear keen to purchase an iPad 2, just 3% of these ‘hot prospects ‘expect to get a HTC, 2% a Blackberry, and only 1% an Acer.

Riley said sales of Apple iPads have accounted for 40% of his company’s total revenue so far this year. “Two years ago – before the Apple iPad arrived – Apple sales were more or less a blimp on our sales sheets.”

Paradigm shift for the youth with iPads?

There has always been a race for a US 100 dollar laptop to supply the masses and the under-privileged and while this dream is not yet a reality, it appears the emergence of the iPad will, nonetheless, be playing a part in making it possible for the underprivileged and poor to have access to a computer, the Internet and unlimited knowledge.

This is according to Christopher Riley, MD of The Notebook Company, one of the country’s leading notebook and accessories retailers – and a large supplier of iPads.

“Many people are saying iPads are just too expensive and will be beyond the reach of the masses. You can pick up an iPad for as little as US 400 dollars, but this is arguably still out of the reach of many. But the easy-to-use features and the Internet capacity of iPads are nonetheless changing the world of computing. As iPads become more ubiquitous and start to replace more and more laptops, we will see prices come down – and then we may see some paradigm shifts,” said Riley.

Indeed, Apple’s iPad has had a massive impact on the local market, so much so, that retailers in South Africa have noted an increase in sales of the device, which has led to the decline in the sale of PCs and laptops. Tablets aren’t killing personal computers yet, but they are making consumers think long and hard before buying laptops.

RILEY SAID IPADS HAVE CREATED A ‘PARADIGM SHIFT’. “IPADS HAVE GALVANISED THE SHIFT TO TABLETS, WHICH ARE FAST-BECOMING THE COST EFFECTIVE SOLUTON FOR THE MASSES. INDEED, IF IT WERE NOT FOR THE INVENTION AND ARRIVAL OF THE IPAD, THE PHENOMENON OF THE TABLET WOULD NOT HAVE OCCURRED.”

Consulting firm Gartner recently lowered its PC shipment forecast for 2011 and 2012, saying soaring sales of tablets will result in far fewer notebook and netbook sales over the next two years than originally expected. “We expect growing consumer enthusiasm for mobile PC alternatives, such as the iPad and other media tablets, to dramatically slow mobile PC sales,” said George Shiffler, research director at Gartner.

Gartner expects tablet sales of 54 million in 2011, up from 15 million iPads sold by Apple – alone – in 2010.