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- Remember Printers?
- Here’s Why The Future Of Television Is More Television
- AT&T’s Network Blows
- iPad Killed The Netbook Star
- Here’s How Much Tech Companies Spend On Advertising
Last week HP announced that it is buying Palm in a $1.2 billion deal. At the time we wrote that HP was buying Palm to reduce its reliance on Microsoft's Windows operating system, and to turbocharge its efforts in the tablet and smartphone markets.
Here's another reason for HP's purchase: HP has successfully diversified its business over the last five years. Its most profitable division, the imaging and printing group, has been stagnant, but thanks to growth in its services and PC businesses, HP has seen operating profits grow.
Buying Palm is another piece of this diversification. It gives HP an opportunity to grow a new line of business in the personal systems group. Smartphones are a rapidly growing business. If HP can take advantage of its scale and distribution, it can tap into that market, further moving away from the flat printing business, which we don't see exploding with growth ever again.
Mark's reasoning is simple: 'follow the money,' he says. People are buying brand new HDTVs left and right. Peter Kafka at All Things D picked up on Mark's post and published the chart below.
When someone buys a huge new TV, the first thing that person wants to do is watch beautiful HD programming. TV is simple. No need to worry about downloading shows or a slow stream. Just plug it in, hook up the cable, and start watching great shows.
AT&T promised to spend $2 billion upgrading its wireless network this year. Whatever it has spent on the upgrades so far isn't helping.
A new report from ChangeWave Research (via Philip Elmer DeWitt) shows consumer dissatisfaction growing with AT&T, while it's decreasing with Verizon. ChangeWave surveyed 4,040 smartphone owners about dropped calls over the last three months.
In the chart below, you can see dropped calls for AT&T customers growing, despite the investment to improve its wireless network.
The netbook market just hit the wall -- no doubt, thanks in part to pent-up demand and early sales for Apple's iPad tablet.
Growth in the netbook market has collapsed from an astounding 641% year-over-year growth rate in July '09 to just 5% in April.
The chart below is adapted from a research note from Katy Huberty of Morgan Stanley (via Philip Elmer DeWitt). Huberty attributes the netbook collapse to the rise of interest in iPad and future tablets. Morgan Stanley surveyed consumers and found 44% of iPad buyers said they were buying it instead of a netbook or laptop.
Yahoo plans to spend $80 million on the next leg of its big ad campaign. If that sounds like a lot, that's because it is. It's almost double the amount Yahoo spent on advertising last year and 40 times what rival AOL spent on advertising in 2009.
WPP-owned Kantar Media provided us with data on tech companies' 2009 total ad spend across print, online, radio, tv, and outdoor. We also plotted the ad spend as a percentage of revenue to see which company gets the most from the least.
Yahoo spent $45 million on ads last year, second most among Internet companies. eBay's $89 million ad spend led the way, especially when shown as a per cent of revenue. Of these companies, Google spent just $11 million on ads, which is the least as per cent of revenue. (This makes sense, because Google rarely advertises on TV.)
Another interesting thing in the data: Apple spends half as much on ads as Microsoft, and appears to get more out them. This sort of surprised us, as it seems that iPhone ads are constantly on TV.
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