Mobile computing is said to be the third step in the evolution away from smartphones, according to a recent report by Morgan Keegan. We got our hands on this as part of our partnership with Nexit Ventures, who know this stuff by hard and have realised the potential there is in the market place. Mobile computing is thought to be the next step after the mobile investment theme, which succeeded the smartphone investment theme. Why is this significant then for investors and entrepreneurs alike?
For a few reasons at least. Firstly, the value creation is slightly different and the revenue creation/potential is growing a lot faster compared to the PC industry (even today). According to Morgan Keegan’s estimates, the mobile computing ecosystem will become bigger than the PC market in about 5 years. See image below for revenue creation in the two industries.
For entrepreneurs (and investors) this spells big money and big opportunities. Morgan Keegan believes where the PC industry was more of a monopoly/duopoly of a few companies, the mobile computing industry will continue to be fragmented and offer numerous companies potential to create value in different levels.
Morgan Keegan also names three benefits of these devices that will drive the growth of the industry further; “instant on”, “always connected” and “unique, diverse and easily discoverable apps”. These are essentially the factors that differentiate mobile computing today from the mobile internet ecosystem.
It is worth noting that while tablet computers are the drivers of this new ecosystem, new and smarter devices will grow into other areas of the consumer market in the coming years.
While this may seem all a bit vague for now, for me at least, this tells of interesting times to come. Furthermore, we may have not yet fully understood what kind of opportunities the whole mobile computing ecosystem can offer across the devices we daily use (and will use in the future).
What do you think?
Nexit Ventures is a mobile venture capital firm focused on wireless technologies and services. Leveraging its extensive network in the global mobile marketplace, Nexit invests primarily in Nordic and US-based earlystage companies with products and services for a global market. For Nordic mobile companies, Nexit provides a bridge to Silicon Valley markets and exit opportunities.
Image by viagallery.com.