Reliance Jio LYF SmartPhones Ready to Hit Market

RJio LYF MobilesGreenfield 4G LTE Telecom Operator Reliance Jio Infocomm has been aggressively negotiating deals to create an affordable 4G LTE SmartPhone eco-system. As a 4G only operator Jio is pushing the improvement of 4G smartphone in India. Apart India’s 2 biggest handset companies (by market share) Samsung and Micromax, Jio is also working closely with almost all handset companies to not only have their own branded phones but also ensure other companies come up with their own smartphones.

The company is looking for 4G phones to be priced between Rs 5,000-25,000. Jio would need a 5 band phone which works on 900, 2100 bands along with 800,

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Mobile Advertising & Ad-Blocking War Intensifies

Mobile Ad Blocking WarA 2015 Reuters Institute digital news report found significant consumer dissatisfaction with online advertising, expressed through the rapid take up of ad blockers and disquiet over the blurring lines between editorial and advertising. Reuters found that 47% of a US sample and 39% of a UK sample used ad-blocking technology, and the IAB has similarly found 34% of US adults use ad blockers.

Eyeo’s popular desktop ad blocker has been on the market since 2006 and has gained as much as ~40% market enetration in the US. It reports >400m total downloads of its software. Ad blockers for desktop advertising do pose a threat to the digital marketing industry if advertisers shy away from marketing on websites knowing that a large portion of their ads won’t be seen.

Ad Blocking on Mobile SmartPhones
Smaller screen sizes on mobile and poor battery life

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StayZilla Vs Zo Rooms – Hotels & Alternative Stay Aggregators

StayZillaStayzilla is an aggregator of hotels and alternative accommodation on the Mobile App & Web. The company’s focus is to build supply, which it believes is the most difficult issue to resolve. It believes that there is enough pent-up demand to fill in any supply that will come online. Traffic on the platform also depends more on having inventory across a wider geographical coverage (number of towns/cities) rather than deeper coverage (more hotels within a geographical area).

Importance of supply can be seen from the fact that the company believes that the property owners are customers rather than those booking the hotel. Further, Stayzilla doesn’t believe that hotel owners / operators need technology for booking as is

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Online Food ordering – Zomato Ups the Ante on Tiny Owl & FoodPanda

Online Food Ordering IndiaZomato launched online ordering, a significant revenue opportunity. Zomato recently launched its food ordering service in India. The service is currently live across 9,000 restaurants in 7 cities. In addition to the main app, It has also launched ‘Zomato Order‘ exclusively for online ordering. Online payment option is not available yet; Zomato Wallet is shown as ‘Coming Soon’. As of now, it is not doing any delivery in-house and is relying only on delivery by restaurants. Restaurants pay commissions of 7.5% to 15% per order – the rate varies based on the delivery rating provided by the user. Online ordering could be a significant revenue opportunity for Zomato; assuming 20-30k orders per day, average order size of Rs400 and 10% commission, revenues could total Rs300-450mn vs. Rs450mn of advertising revenues earned in India in FY15.

Foodpanda and TinyOwl are two key online food ordering services in India Foodpanda currently handles

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Mobile Money Fragmentation (Telcos / Banks) Breaks Mass Market

In a world where each nation uses its own currency which could not be exchanged, global commerce would stall. But if one or even two currencies were introduced, which were accepted globally, international commerce could resume.

Using this analogy, we argue that fragmented industries (Telecom Companies / Banks) fundamentally cannot successfully launch global m-payment systems as by definition they are too regional. If consumers want to make a purchase or transfer through a mobile, they don’t want to discover their m-payment mechanism isn’t compatible. Therefore, we believe that a sustainable, long-term m-payment application will require a critical mass comparable to the number of iPhone (600m) or Android (1.9bn) users and consequently

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Why iPhone & Mac Sales Grow while iPad Slips ?

iPhone Mac Sales GrowiPhone continues to be the key driver of top-line and bottom-line upside, with units up 40% y/y—two and a half times the pace of IDC’s estimate for 16% growth within the smartphone market globally (and well above our 25% estimate heading into the print). In particular, emerging markets were the key driver of this upside, with unit sales up 63% y/y in emerging regions, and in China, the iPhone was up over 70% y/y. Management noted it continues to see a higher rate of switchers with the iPhone 6/6 Plus relative to prior iPhone cycles, and that there is a sizeable number of first-time buyers, particularly in emerging markets.

Tim Cook appeared optimistic that the iPhone can maintain its momentum, noting

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Mobile Powers Chinese Rural e-Commerce

Mobile Commerce Rural ChinaAccording to research recently released by bjbusiness, roughly 64% of netizens in rural China shop via mobile phone, far in excess of those who shop by PC (~36%). In many of China’s less developed markets, the smart phone is indeed the key gateway to internet access rather than the PC due to the lower device cost when compared with the PC. E-commerce penetration in rural areas has risen substantially, as key e-commerce players such as Alibaba and JD shift their strategic focus from top-tier cities to rural areas. Mobile usage meanwhile has come to embrace online shopping quite rapidly and seamlessly.

Roughly 74% of rural netizens indicate Taobao and Tmall as their most frequently visited e-commerce sites, while

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High Speed / Fast Charging SmartPhones – New USP

SmartPhones With Fast Charging BatteriesIn the past two years, big screen phones have been gaining popularity. Due to the bigger size of battery, phablet battery hours usually are longer. According to Apple, iPhone 6+ can last 24 hours’ talk time on 3G vs 14 hours for iPhone 6. This is because iPhone 6+ has a 2,915 mAh capacity battery, 61% larger vs iPhone 6’s 1810 mAh. However, the downside is that charging takes much longer. For example, it can take 3~4 hours to fully charge an iPhone 6+.

Samsung adopted fast charging in Galaxy Note 4 and Galaxy S6. We expect many international and Chinese brand smartphones to start adopting similar technologies with models launching in 2H15. High Speed / Fast Charging SmartPhones constitute < 10% of the market today and is expected

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Just Dial Asset Light Local Commerce, Open to Partnership

Justdial Asset Light CommerceIn an era where JustDial – JD is competing with the PE-backed internet players that are flush with cash and have an appetite for cash burn, JD unveiled its strategy saying that it maintains belief that over the longer term, JD will be able to compete and emerge stronger vs. vertical / horizontal players who are gaining top-line market share by burning cash.

Just Dial has invested heavily in making a mobile app that can provide multiple touch points for the consumer. The single focus for technological evolution at the company is linked to make JD the preferred platform for all

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Mobile Social Platforms – Instagram & WhatsApp to be Monetized by Facebook

Instagram-whatsapp-monetizationInstagram and WhatsApp’s large user base and high engagement levels suggest a large revenue potential for Facebook (FB).

Instagram is a mobile online photo sharing, video-sharing social network service that allows users to take photos and videos and share them on its platform. Given growing use of photo sharing, we see Instagram as a well-positioned as a social and mobile platform play, and a nice compliment to the Facebook audience given a younger demographic profile of the site.

Instagram has exceeded with 300mn MAUs expectations. Site activity is impressive with 70mn photos shared per day and 2.5bn daily likes. Globally, users spend over 20 minutes per day on Instagram, which sets the foundation for material advertising dollars. We see a $4bn+ revenue opportunity and potential valuation range for Instagram at $30bn – $37bn based on user and potential revenue comparisons to

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