APPY DAYS
The rise of smartphone and tablet apps means that fewer people are turning to their desktop computers to use search engines.
Microsoft saw its revenue fall by 8% and income fall by 26%, as a slowdown in the PC business (ahead of next week's launch of Windows 8) took hold. Windows saw its revenues and profits drop, by 8% and 26% respectively.
Smartphones have been outselling PCs since the end of 2010, and the amount of tablets are shooting up.
"Pay per click (PPC)"- where advertisers pay the publisher (typically a website owner) when the ad is clicked, has been dropping for the past year, after rising for the previous 2 years.
Why? People aren't using desktops or laptops so much; they're using smartphones, and mobile isn't such a great advertising platform for search.
People are now more interested at in their smartphones, or swiping around on tablets, and sometimes even in preference to firing up a laptop.
Even worse is that "search" isn't so important on mobile. People use apps: if they want train times they'll get an app that tells them, rather than searching. If they want to find a restaurant, they might search or use a restaurant app such as Yelp.
The fact that tablets are for the main part just cheaper, have longer battery life, do much of the same jobs (email, web browsing, spreadsheets, document composition and reading) and can include mobile broadband connections (something most laptops still don't).
It's as though we've been driving around in trucks, and suddenly someone discovered how to build cars, instead. But for Microsoft, which (if we extend the metaphor) has been making the fuel for those trucks, the change is a problem.
Only Samsung and Apple are making major profits; HTC is keeping its head above water, just about, but even it is troubled.
Nokia and RIM (developer of BB) had smartphones, or smartphone functionality, well before Apple and Android. Yet both have been left behind by the rapid changes, similar fate could follow Google and Microsoft if they do not adapt to change.
MY OPINION
I agree about ‘Peak Search’ e.g. Facebook overtook Google as the most popular website some time ago. Apps have enabled users to skip the use of Google and directly go to their required websites. An example of this would be the Facebook app itself, in which you no longer need to search Facebook on a browser you are directly there. Some apps can only be accessed via smartphones has not helped Google’s cause an example of this would be Instagram which can only be accessed via smartphones. Apple has also created its own maps instead of using Google maps for Apple products.
I think mobile device are outselling computers because computers have had their time of evolution and are probably the best they can be. All major technology companies have been focusing on tablets and phones so I think they know laptops and desktops are going to be outsold. Also laptops and desktops tend to be physically updated less. Access to internet is also one of the main reasons because 4G which is advertised as faster or as fast as Wi-Fi will promote more mobile internet use.
ReplyDelete