Topics

916

Technology / Monetization - Facebook Vs Twitter

« on: October 24, 2014, 09:22:52 PM »

Recent reports have suggested that Facebook?s (FB) monetization (i.e., ad revenue per user) is materially greater than Twitter?s (TWTR), which suggests that FB may not have as much upside in monetization as one of its closest comps.

The report has not considered an important variable ? the relative differences in engagement (i.e., time spent), which directly impacts the available ad inventory (i.e., monetization potential). When engagement is taken into account (e.g., avg. feed views per month of 210 for Twitter users vs. 950 for FB), we estimate that FB?s monetization is actually 50-60% less than Twitter (not 100% greater as some have reported).

In the case of FB and TWTR, the differences today are significant. Using both time spent data from comScore and our own method for comparing avg feed views per user, we estimate that TWTR?s ad monetization per user ($0.53/Feed View/Month and $1.84/Mins Spent/Month) is actually 2-3x greater than FB?s ($0.23 and $0.63, resp.).

917

4G / LTE / Challenges for Standalone 4G LTE Network

« on: October 24, 2014, 04:15:31 PM »

We have not yet seen a robust ecosystem/handset that would be able to support the launch of TD and FD together. While China is seeing some progress on 4G we do not expect low-cost 4G handsets to become available on the market any time soon.

That said, we do note that QCOM Snapdragon 210 represents clear progress, but a commercial rollout is unlikely before the first half of
2015; it will most likely begin with China and it could be early 2016 before it is available in India. Furthermore, by that time, we expect low-cost branded 3G smartphones to be available in the USD50 price level, which we think would be sufficiently affordable to drive mass market adoption in 3G

4G operators have 20MHz of spectrum in the poor 2.3GHz band. Given this, pure-play 4G operators need to deploy a very large number of towers and a pan- India operator will need to start a tower population of c150k. Moreover, 4G requires towers located
at short distances apart. Even existing tower companies may find it tricky to meet demands as new tower deployment in urban centres is a big challenge

While network sharing could allow new entrants to benefit in terms of capex savings and shorter rollout times, it comes with a near- to medium-term challenge. Most of these towers do not have fibre backhaul, which may limit the capacity advantage of the 2.3GHz spectrum

Although we are of the view that TD-LTE will work, we believe that TD-LTE VoLTE is still a couple of years away from mass market adoption. Consequently, we believe it is difficult to see how a pure-play 4G operator can achieve viable commercial scale with this expensive, complex, early-stage technology; however, we expect VoLTE to work in the medium term in low-income markets such as India.

918

5G / Wi-Fi / Wireless Broadband Users Rise

« on: October 24, 2014, 02:26:26 PM »

In a market where data is emerging as the key growth driver, trends in the wireless broadband (3G and EVDO; the latter is the 3G-equivalent CDMA offering) subs metrics appear to be in favor of the incumbents. We note CDMA operators have been offering EVDO dongles for a long time and hence have an established base of subs in that segment. This meant the wireless broadband (BB) subs share of the top-three combined was a lowly 51% at the end of December 2013 (when TRAI started publishing this data).

In eight months through August 2014, wireless Broadband subscribers share of the top-three rose to 63.8% as they captured 91% of the incremental subs. We expect the trend to continue given that data sweepstakes will be driven by the ability to invest and good judgment on right timing of investments, in our view.

919

SmartPhones & Apps / What is IBM MobileFirst for iOS ?

« on: October 22, 2014, 11:34:27 AM »

IBM will sell iPhones and iPads with the industry-specific solutions to business clients. IBM will develop native apps for iPhone and iPad. Apple has said that it will continue allowing enterprise app developers to sell directly to enterprises without Apple taking a cut

IBM will offer cloud services optimized for iOS (device management, security, analytics, and mobile integration) Packaged offerings from IBM for device activation and supply management. Possible incremental opportunity for Apple to increase sales to the secondary market.

AppleCare service and support for enterprise

920

SmartPhones & Apps / Microsoft OneNote Works Seamlessly on Android, iOS and Windows

« on: October 22, 2014, 11:32:21 AM »

In our hands-on testing we found Microsoft OneNote to work consistently and seamlessly across Windows, iOS, and Android devices
with different form factors ? PC, Tablet, and Phone.

Importantly, we found that the feature set for OneNote was virtually identical across the different platforms we tested.

We think OneNote represents a good example of consistent capabilities that Microsoft could potentially deliver through native versions of Office for Android and iOS in the future, leveling the Enterprise playing field between iOS and Android.

921

Web 2.0 / Baidu Advertisers Spend 35% on Mobile

« on: October 22, 2014, 11:14:37 AM »

Data Suggests that search agencies and advertisers are on track to achieve their annual budget on Baidu, and are now spending 30-40% of their budget on mobile, depending on the industry. The healthcare advertisers (~35% of Baidu?s search revenue) now allocate 50-70% of their budget to mobile, with CPC and ROI achieving or surpassing that of PCs. We believe mobile will sustainably drive Baidu?s
search revenue for the next 2-3 years

Qihoo may launch healthcare search ads in 4Q, we do not expect it to negatively impact Baidu much, as 1) it seems that Qihoo?s
budget is mostly incremental; and 2) healthcare-related traffic is shifting to mobile from PCs faster than other categories, a long-term positive to Baidu

922

Web 2.0 / Qihoo's healthcare search market

« on: October 22, 2014, 11:12:48 AM »

The healthcare advertisers we met with have prepared a budget for Qihoo equivalent to 15-25% of that for Baidu and all budgets are incremental.

We note that healthcare-related traffic is shifting towards mobile from PC faster than other categories, likely out of more privacy protection
consideration. Given Qihoo?s weak position on mobile search, it is negative to Qihoo in the long term.

Mobile games on the other hand is slowing faster than we expected, likely due to a weak pipeline and intense competition from Tencent and Baidu.

923

Smart Connected Devices / Who Uses Tablets in China ?

« on: October 17, 2014, 01:11:53 PM »

According to the report, approximately 70% of users access their tablets every day, with an average time spent of 1.9 hours per day. The report noted that iOS users on average install 16 apps, compared with 12 for Android users. In terms of user demographics, the report claimed that tablet PC users are mainly white-collar, with approximately 65% of them having monthly incomes of over RMB3,000

Advertising cost in terms of CPM is higher on tablet PC's compared with smartphones and PC's due to higher user pedigree and better
display qualities. Leading online video player Youku has already put much  effort into this area in rolling out its multiscreen strategy. In addition, the relatively low ad inventory levels on tablets also imply some upside potential.

924

3G / HSPA / EVDO / Broadband Subscribers Reach 74.31 Mn

« on: October 16, 2014, 07:57:53 AM »

Total Broadband Subscribers in India [Speed Greater than 512 Kbps] reached 74.31 Mn at the end of August 2014 This includes Wireless & Wired Broadband Subscribers.

Wireless broadband [EVDO + 3G] is the fastest growing segment which added 3.48 Mn Users in the month of August 2014 taking the Total to 58.82 Mn Subscribers.

Wired broadband [DSL / Cable] subscriber number reached 15.05 Mn at end of Aug 2014.

Wi-Fi, WiMax and other P2P Broadband subscriber number stands at 0.44 Mn

925

SmartPhones & Apps / Baidu Reports 38% in users of its App

« on: October 16, 2014, 07:27:40 AM »

Baidu today published a report regarding China's Android app distribution platforms. According to the report, the total number of Android marketplace users in China has grown by 27% since the beginning of the year. Baidu claims to have seen an increase of 38% in users of its app distribution platforms (including 91 Wireless and Baidu Mobile Assistant, etc) over this period. The report also revealed that each Baidu app store user on average downloaded 3.1 new apps or app updates per day (vs a market average of 2.9 downloads).

Baidu further revealed in the report that its app distribution platforms have grown to cover 600m Android users, with more than 1m developers working with them. The company also claimed that it has increased download volumes for new apps, thanks to improvements in the targeting of promotions, which is in turn backed by its leading technology in big data analysis.

While growth of the app store market still seems quite robust, we are cautious of the potential for slowdown due to the fact that penetration rates have already reached relatively high levels. Big players such as Baidu and Tencent may boast better performance in a market with moderating growth and intensified competition given their clear competitive advantages. We believe both players for instance to be spending quite heavily in the area of app pre-installations

926

SmartPhones & Apps / Facebook + WhatsApp Messenger Lead WeChat by 60%

« on: October 15, 2014, 02:49:30 PM »

According to tweet from the company's cofounder, Jan Koum, WhatsApp reached 600mn MAUs, which accounted for y/y
growth of approximately 100%. Given Facebook?s 200 million monthly actives on Messenger in 2Q, and assuming a likely conservative 50% overlap between Messenger and WhatsApp, MAUs for the combined Facebook Messaging service could be approximately 700mn active users ? approximately 60% higher than the closest competitor WeChat, and likely more geographically diverse

This may be surprising for some US-based investors as shown by recent data from Parks Associates that shows WhatsApp as only the seventh most popular messaging app amongst US messaging app users. However, over the last five months WhatsApp remains among the top four most downloaded apps globally.

With Facebook Messenger?s presence in the US and WhatsApp presence internationally, Facebook has clearly become the preeminent global player within the messaging services space.

927

Smart Connected Devices / What to Expect from new iPad 2014 ?

« on: October 15, 2014, 02:36:19 PM »

Apple at the forthcoming October 16th event could announce thinner and lighter versions of iPad Air and iPad mini with updated processors, updated iOS, Touch ID, better camera and video recording features as well as additional color options.

On the Mac side, we expect Apple to update their operating systems (OS X Yosemite) as well as update the display resolution in their desktops and potentially announce a 12? MacBook Air (currently AAPL sells 11? and 13? flash based MacBook Airs and 13? and 15?
MacBook Pros).

We expect these products announced to be available prior to Black Friday/Christmas holiday shopping season unlike Apple Watch.

928

Smart Connected Devices / Evolution of iPad from 2010 to ipad Air 2013

« on: October 15, 2014, 02:31:39 PM »

The following Table Shows the Evolution of First Generation iPad from 2010 to iPad Air and iPad Mini in 2013 with complete specification of the Devices.

929

Web 2.0 / Is Capital Constraint for Internet Companies ?

« on: October 15, 2014, 02:15:26 PM »

Capital is the key constraint for any start-up, as they do not have traditional sources of funding (public markets, banks). This becomes more relevant as some Internet companies do not have a robust monetization model.

Our study shows that capital is not really a constraint for the Indian Internet sector. We estimate that investors (angle, VC, PE) have invested ~US$6bn in the sector in the last three years. The pace of investment has only increased with ~US$3bn announced in the last three months alone (US$1bn investment in Flipkart, US$2bn to be invested by Amazon in its India business).

Key requirements for funding include acquiring customers either through discounts or marketing campaigns, warehousing and building a logistics network, scaling up the business (read headcount) as the business expands, acquisitions and some companies have difficulty with monetization at an early stage.

A major portion of the funding is focused on building warehouses and logistical facilities, which are critical for a good customer experience; this would become a key competitive differentiator longer term and help gain sustainable market share. Some companies are also rolling out offline stores, which can be used to educate users, increasing their comfort level.

Media reports indicate that Jabong has launched offline stores in areas central to a group of villages where people can understand and adapt to eshopping. These pilot programs have been done in cities such as Amritsar, Jalandhar and Patna. Myntra also plans to open physical stores in Bangalore, Delhi and Mumbai over the next 18 months.

However, it is not as if all companies are able to raise funds ? media reports indicate that Yebhi, a five-yearold online retailer, has been scaling down its employees. It started as an online footwear store in 2009 but changed in 2011 to fashion and apparel and then became a marketplace for competitors.

930

Web 2.0 / Venture Capital Fundng Raised by Indian Internet Companies

« on: October 15, 2014, 02:10:38 PM »

Date Investee company Amount raised (US$ m) Investor
Sep-14 Bigbasket 3 Helion, Zodius Fund, Avendus, Ascent Capital, LionRock
Aug-14 Snapdeal Not disclosed Mr. Ratan Tata
Aug-14 Food Panda 60 Falcon Edge and other existing investor
Aug-14 HelpingDoC.com 2 Senior Marketing Systems (health information service based in Malaysia)
Aug-14 Frilp 1 Individual investors
Aug-14 GOQii Not disclosed Individual investors
Jul-14 Flipkart 1,000 GIC, Tiger Global, Naspers, Accel Partners, Morgan Stanley
Jul-14 Amazon India 2,000 Parent
Jul-14 Urban ladder 20 Steadview, SAIF, Kalaari
Jul-14 OLA Cabs 41 Steadview Capital, Sequoia Capital
Jul-14 WeAreHolidays Not disclosed Matrix Partners, Blume Ventures, GSF Superangels
Jul-14 Fashionara.com 8 Helion Venture Partners, Lightspeed Venture
Jul-14 Secret 25
Jul-14 Reviews42 5 Tiger Global, Blume Ventures, Nirvana Ventures
Jul-14 Hungama digital 40 Besemer venture, Intel
Jul-14 Freshdesk 31 Google Capital
Jul-14 iyogi 28 Axon Partners, Madison India
Jul-14 BookMyShow 25 SAIF
Jul-14 Yatra 23 IDG Ventures, Vertex Ventures
Jun-14 TripHobo 4 Kalaari
Jun-14 Housing 19 Helion Venture, Nexus Ventures, Qualcomm Ventures
Jun-14 Cleartax.in Not disclosed Y Combinator
Jun-14 MeraEvents 1 OMICS international
Jun-14 IndiaHomes 25 New Enterprise Associates, Helion Ventures, Foundation capital
Jun-14 Freshdesk 31 Google Capital
Jun-14 fashionandyou 10 Sequoia, Smile Group, Norwest Venture, Intel Capital, Nokia Growth Partners
Jun-14 TouchTalent.com 1 MMYT & Flipkart founders, online fund raising platform letsventure
Jun-14 Bombay Shirt Company Not disclosed Patni computer founders
May-14 Flipkart 210 DST, Tiger Global, Naspers, Iconiq Capital
May-14 Snapdeal 100 Premji Invest, Temasek, Blackrock
May-14 Pepperfry.com 16 Bertelsmann India, Norwest Venture
May-14 LimeRoad 15 Tiger, Lightspeed venture, matrix partners
May-14 Toppr.com 2 Helion venture, SAIF
May-14 Embibe.com 4 Kalaari, Lightbox
May-14 PolicyBazaar 20 Tiger Global
May-14 Taxiforsure 10 Bessemer Venture, Accel Partners, Helion Venture, Blume Ventures
Mar-14 Quickr 90 Warburg Pincus, Ebay, Omidyar Network, Matrix Partners, Nokia Growth partners, Norwest Venture
Mar-14 Canvera 2 Info Edge
Feb-14 Myntra 50 Premji Invest, existing & new investors
Feb-14 Snapdeal 135 eBay, Intel Capital, Bessemer Venure, Norwest Venture, Kalaari, Saama
Feb-14 Jabong 28 CDC Group
Feb-14 Food Panda 20 Phenomenon investors
Feb-14 iYogi Not disclosed Madison India
Feb-14 Citruspay 6 Netprice.com, Ecotext Asia
Jan-14 Hopscotch 2 Lion capital, individual investors
Jan-14 CommonFloor 10 Tiger Global, Accel Partners
Jan-14 First-Cry.com 15 Vertex Venture, IDG Ventures and SAIF
Jan-14 BankBazaar.com 13 Sequoia Capital, Walden International
Jan-14 Chargebee 1 Accel Partners
Jan-14 MobStac 2 Accel Partners
Dec-13 IndaProperty.com 12 Bertelsmann India, Canaan Partners, MayField Fund
Nov-13 Urban ladder 5 SAIF
Nov-13 Urban ladder 5 SAIF, Kalaari
Nov-13 Zomato 38 Sequoia, Info Edge
Oct-13 Food Panda 8 iMENA Holdings
Oct-13 Flipkart 160 Dragoneer investment, MS, Sofina and Vulcan, Tiger Global
Oct-13 Ticketgoose.com 3 Indventure
Oct-13 Komli Media 30 Peepul Capital, Norwest Venture, Nexus Venture, Helion Value, Draper Fisher Jurvetson
Oct-13 Stitch fix 12 Benchmark
Oct-13 Flipkart 160 Tiger Global, Morgan Stanley, Sofina, Vulcan Capital
Oct-13 Unbxd 2 IDG venture, Inventus Capital
Sep-13 Delhivery 6 Nexus Venture
Jul-13 Flipkart 200 Naspers, Tiger Global, Accel, Iconiq
Jul-13 CommonFloor 8 Tiger Global, Accel Partners
Jul-13 Flipkart 200 Tiger, Accel Partners, Iconiq capital, Naspers
Jun-13 Food Panda 20 Phenomen Ventures and others
Jun-13 Housing 3 Nexus Ventures
May-13 India Property 7 Canaan partners, Mayfield fund
Apr-13 PolicyBazaar 5 Inventus Capital, Info Edge, Intel Capital
Apr-13 Pepperfry.com 8 Norwest Venture
Mar-13 ShopClues.com 10 Nexus Venture Partners, Helion Venture Partners, Netprice.com
Mar-13 Healthkart 14 Intel Capital, Sequoia
Oct-12 LimeRoad 5 Matrix partners
Aug-12 Urban ladder 1 Kalaari
Aug-12 Flipkart 150 Tiger Global, Naspers
Jun-12 Just Dial 57 Sequoia, SAP Venture
Jun-12 Greendust 40 Vertex Venture, Kleiner Perkins Caufield Byers, Sherpalo Ventures
Feb-12 Myntra 20 Tiger Global, IDG Venture, Indi-US Venture
Oct-11 Naaptol 25 New Enterprise Associates, Cannan Partners, Silicon valley Bank
Jul-11 Snapdeal 40 Bessemer Venture, Nexus Venture, Indo US Venture
Apr-11 Yatra 45 Valiant Capital, Norwest Venture, Intel Capital
Jun-10 Flipkart 10 Tiger Global