Economic Impacts



Current Economic Trends

  • In the market for electronic devices, smartphones and tablets are relatively newer products that are now gaining popularity with people as they attract users with their cutting-edge features.                  
  • In Singapore, smartphones make up at least 70-80% of the sales in all three telecommunication companies.
  • In recent years, the rate of the worldwide sales of PCs is decelerating. Although Worldwide PC shipments had a 3.2% increase from the third quarter of 2010, this is actually lower than the expected projection. 
  • The industry is performing below normal seasonality.
  • Rising demand of smartphones has affected various phone manufacturing companies. 
  • Nokia Corporation’s current market share is at the lowest it has been since 1997, nearly 14 years ago. Now, Apple and Samsung have taken over the company in the smartphones market. This has resulted in a drop of profits by around 40% for Nokia which in turn leads to an operating loss of €487 million in Quarter 2 of year 2011.



Business Opportunities
  • Promote entrepreneurship. 

  •  The global mobile applications market was worth $6.8 billion in year 2010 and is expected to grow to $25 billion by 2015, according to a survey this year by MarketsAndMarkets.
  • Accessories designed for these devices is another market that is increasingly popular. 



Effect on Personal Computers (PC):




Effect on Mobile Phone industry:



Economic Impacts

By understanding how consumers are using these gadgets and how consumer consumption habits may differ with the technological shifts, one would be able to come out with products that complement these devices and thus attract businesses.




 - Nick D’Aloisio, a 16 years old British-Australian computer programmer, is one of the most well known entrepreneur for his creation of Summly and its technology. 


- Summly, which is available on iPhone operating system (iOS) devices, automatically summarizes various types of content like articles and search results using some form of algorithm to allow easy reading. 


- With over 100,000 downloads in its first month of release, he is the also possibly the youngest individual to get seed funding for his venture at reportedly over US$250k at the age of fifteen.


- TRTL BOT, a four-person iPhone accessory start-up found in Los Angeles that sells eco-friendly covers for iPhones.



- Besides protecting the phone, they have incorporated a cardholder into their covers. Hence the buyer is able to bring his or her credit and identification cards without carrying out a wallet. 
  



Investments in Devices:
  • Increased efficiency
  • Convenience
  • Improved functionality of systems

Applicable to 2 Main Sectors:
  1. Education - facilitation of learning
  2. Business - bringing technology and service to a higher level

Effect on Education:

Ministry of Education (MOE) put in a large sum into the rebuilding or modifying campuses with enhanced technological devices and also to equipping students with devices such as the tablet for individual learning. 
- PRIME Project (S$28 million) - upgrading and reconstruction work

  • Ngee Ann Secondary

    Ngee Ann Secondary School goes hi-tech. (Photo from Xavier Lur)

    • Improved technological resources and infrastructure - school building recently erect with a new technologically-inclined library and various studios including that of math modelling and design and technology. 
    • '1:1 Learning Programme' - equipping each student in the class with a personal electronic learning device, the Windows Slate tablet PC. 
      • Used as an e-textbook

Schools individually allocated a budget for the purchase of tablets to introduce creative and electronic learning and enhance interaction of students online with the tablet as a device to facilitate the online platform.
  • Crescent Girls' School

    n iPad pilot projec

    • Tablet PCs for each student
      • Used especially for video production (drama), and to create blogs (math questions)
      • Investments in courses that teach students Information and Communications Technology (ICT) skills
        • Microsoft Office, Adobe Photoshop and Dreamweaver

  • Nanyang Girls' School

    undefined

    • iPad Pilot Project, where each student is issued a 32GB Wi-Fi iPad fully funded by the school 
      • S$135,000 to buy 150 iPads for 140 students and 10 teachers
      • Applications like Keynote, DropBox, DocsToGo and eClicker made as requirements to facilitate communication and interaction between peers, as well as students and teachers



Effect on the Corporate Market/Businesses:

The use of tablet PCs and iPhones is incorporated into company management and the service floor to bring technology and service to a higher level.
  • Departmental Stores
    • Lowe's (home improvement retailer)

      Employee checking inventory on the store floor 

      • 42,000 iPhones were purchased for employees’ usage in the store 
        • Checking of inventory via mobile online platform along store aisles is now enabled
        • Employees can advertise/demonstrate usage of items via how-to videos that can be shown to customers on the spot
        • Applications for cost/customization calculations that benefit customers and increase convenience
  • Airline Companies
    • Alaska, United and Continental Airlines
      • iPads on board flights for pilots

        Checking an online manual on the iPad

        • Hard copy aircraft flight manuals, navigational charts etc. are being replaced
        • Allows for electronic retrieval of data - 'all-in-one'
        • Constant online updates without having to manually replace old information

Subscribe to: Posts (Atom)