Mobile causes turbulence in the web world


Posted on October 23, 2012  /  0 Comments

LIRNEasia was early in seeing mobile as the future. We had the benefit of the Teleuse@BOP surveys. We were seen as the main voice for the mobile future in ICT4D circles. We carried comments from people like Steve Jobs who saw it coming.

Now the wave that we saw developing in our part of the world has reached the centers of ICT power.

The industry giants remain highly profitable drivers of the economy. Yet the world’s shift to computing on mobile devices is taking a toll, including disappointing earnings reports last week from Google, Microsoft and Intel, in large measure related to revenue from mobile devices. Investors are in suspense over Facebook’s earnings to be disclosed Tuesday, for much the same reason. Yahoo’s new chief, Marissa Mayer, said on Monday that Yahoo had failed to capitalize on mobile and must become a predominantly mobile company.

Demand for Intel chips inside computers — which are much more profitable than those inside smartphones — is plummeting. At Microsoft, sales of software for PCs are sharply declining. At Google, the price that advertisers pay when people click on ads has fallen for a year. This is partly because, while mobile ads are exploding, they cost less than Internet ads; advertisers are still figuring out how to make them most effective.

Full report.

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