These past few Qs has seen some significant pain coming to some OEMs such as Nokia and SonyEricsson. Don’t get me wrong, I have friends at both of these OEMs and I think they both produce amazing devices but I’m wondering if there is an another reason for their pain.
Yesterday, I went to the T-Mobile store to look at some device packaging. I specifically wanted to see the images on the boxes. In 2005, when I last did this exercise, you’d often see details such as megapixels, video support, screen size and 3G written on a box. This time, it wasn’t a single detail about the device but actually the logos of each web service that worked (ie Facebook, Youtube, Pandora, Google, Twitter etc). I’ve knew this trend was coming and it is something I’ve been evangelizing for the last couple years – it’s about the services the device supports and not the device specs (or at least not as much).
What’s interesting though, is if you are start to look at each of these logos, you realize they are all US Web 2.0 companies. A monopoly by normal definition is usually when a company has an over-riding control of a specific vertical such that they can dictate the terms for the rest of the ecosystem (ie owning the entire operating system space, ha!). Horizontal monopolies are less common these days but I’m wondering if the US has a geo-monopoly on Web 2.0? Is that even possible and obviously not in the traditional sense.
Given that the next generation devices from TVs to vehicles to phones and other electronics are going to be differentiated by the services they include (ie access to Twitter and Facebook, or being able to search via Google or watch video via YouTube) – this points to an interesting problem. If you are an OEM and you do not have significant marketshare in the US, how do you convince the Web 2.0 folks in the US to build to your platform first (this is under the presumption that most Web 2.0 startups / companies will build for their home territory first). Sure, they may be able to pay these Web 2.0 companies to build for them or incentivize the top 10 guys but how do you convince the long-tail which easily represents 70-80%+ of all the apps / services and usage.
What’s even more painful is that the pain has a downward spiraling effect – ie, Nokia has to convince these Web 2.0 developers to build killer services to sell more phones but if the first doesn’t happen (or to the extent necessary), the 2nd issue becomes an even larger problem. I guess you see the same effect with the brains of Silicon Valley – there is no brain drain IMO, if anything, I see more and more very talented people choosing to live here.
Taking this a step further, you could being to look at Web 2.0 as a resource. Resource control spread by geo is well understood (ie gold and oil are great examples). Can Web 2.0 be considered a necessary resource like gold or oil?
Interesting thought experiment, I would love to get your feedback.
Follow This Blog Via Email
- SXSW 2016: Messaging Bots
- Reflecting on the Productivity Category
- Tech Discrimination
- Daily Active Users Don’t Matter!
- IOT: The Competition for Attention
- How Google and Others Are Using Data Science to Speed Up Productivity
- Why I’m Excited About Google Glass?
- Context Is a Layer and Not a Category
- Sales 2.0: The Bottoms-Up Sales Model
- Is UX Going to be Commoditized Next?
- To Win Enterprise, Target the Consumer
- Using a Chromebook for a Week
- Android (and the Tab!) in the Enterprise
- Ad Learnings from Recipe Search
- CPA Advertising on Mobile
- Enterprise Mobile Is Hot!
- Network Responsibility
- In-Door Mapping
- The Social Network
- Using a Mobile Phone to Drive Behavior Change
- Apps vs. Web Apps
- Understanding Developer Psychology
- Are Batteries Improving?
- Over the Air and Emerging Markets
- Are Platform Game Lobbies the Next Social Graph?
- Are Plugins (and Flash) Going Away?
- Lessons Learned in Monetization
- Understanding the Emerging Market
- OEMs, Please Choose
- Understanding PDE (Positional Determining Entity)
- Has the Power Shifted Back to Operators?
- Is the Killer App the App Store?
- Navigating the Mobile Content Landscape
- Wholesale Application Community
- Sharing Overload?
- The Ad Ballot
- Device Patent Wars
- Is Apple Making a Mobile Wallet Play?
- Top 6 Reasons Why Nokia Doesn’t Have a Capacitive Touch Screen
- Mobile Trends 2020
- Mobile Taking a Cue From the Travel Industry
- CTIA Party Analysis
- Measuring AT&Ts Network
- Mobile Cloud Computing
- Mobile Beyond & NARIP
- Mobile 2.0 Advertising Notes
- Carnival of the Mobilists #193
- The Broken Subscription Model
- The Mobile Reserve
- The Fragmented Web
- Got to Love the Music Industry
- What Platforms Should I Build For?
- To Operator or to Not to Operator
- What Do Bankers Do?
- My Older Posts