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CCID Consulting: Navigating Obstacles on the Path to 3C Convergence

2007-09-18 17:08 1181


BEIJING, Sept. 18 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), releases its article on cross growth traps on the road of 3C convergence.

On June 29, 2007, Apple released its new product, the iPhone. In half a day, 270,000 sets of the iPhone were sold. But, this strong sales momentum did not last, nor did it live up to expectations. According to AT&T, the iPhone’s sales partner in the United States: This is the best sold consumer electronics product in AT&T’s history. As far as iPhone’s successful sales are concerned, we cannot help but be awed by Apple’s superb market performance which leaves us thinking: what has Apple done to forge ahead in the evolution of its business model? How has it crossed one trap after another in its course of development? What force has pushed it to carry out continuous innovations and reform, and successfully seize the first opportunities that arise?

From computers to consumer electronics and then to communications, Apple has its own unique understanding of the integration and evolutionary path of 3C. No matter what the integration evolution path is, Apple has got the experience, from the not so successful iMac and the extremely successful iPod, in building a sound business ecological system and fully integrating industry chain resources. This is the logical road towards success.

Looking back on the evolution of Apple’s business model, it is easy to see that Apple has met a long list of growth traps. In the later 1990s, Apple lost its position as a leading PC supplier, mainly because Jobs insisted on using Apple’s own OS X, which was not compatible with Windows OS. By 2006, iMac’s global shipment only stood at 5.60 million sets.

In October 2001, the first generation of the iPod, mainly with MP3 audio playing functions, was released worldwide. By 2002, global iPod shipment only stood at 380,000 sets. Apple met an unprecedented growth pitfall. In the face of various traps, Apple gradually prevailed by adjusting and transforming its business models.

In 2003, total iPod sales grew over 280%. In 2006, global iPod shipment exceeded 46 million sets. An important reason for such explosive growth was the emergence of iTunes, the online music shops. Through the integration and interaction with online content services, such shops allow iPod users to download music for a price of $0.99 per song. Breaking the traditional CD album model, this sales model brought an extraordinary sales driving force for the iPod. It also made Apple the 3rd largest music retailer in the United States, only after Wal-mart and BestBuy. By June 30, 2007, almost 110 million sets of iPod were sold worldwide.

Apple also made an important decision in 2006, to support Windows systems on Apple machines. Currently, its products also support Vista Operating System. In the first 2 quarters of 2007, iMac shipment grew over 30% year-on-year. An open and compatible platform system has attracted more and more consumers to the ranks of iMac "fans," while richer and richer online contents have gradually made the iPod a mobile audio and video entertainment center. Every dollar put into the iPod will bring about some $5 spending on such peripheral equipment as outer casing, earphone and sound box. Such sustained inputs further strengthen customer cohesion, and build a more powerful, more robust content-equipment-peripheral ecological system.

From the iPod to the iPhone, Apple has keenly graphed changing user demand. The 3C evolution path which Apple has made for the industry has allowed the industry understand one thing: more profound changes between 3C integration and industry integration are user demand integration. Such a dynamic demand integration process has led the integration of user demands for mobile video entertainment, mobile Internet services and mobile voice calls. Such "grand integration" takes the demand for mobile services effectiveness and equipment reliability from the beginning.

As to how to cope with user demand integration and 3C integration trend, Apple has given us one answer. But, this answer only belongs to Apple. In addition to such key Internet services as Push mail and Google map integrated into the iPhone, more comprehensive Internet functions and effective business demands will become the next difficult problem for Apple. It will also become its next growth trap. Based on the historical experiences, we have reason to believe that Apple will have a coping measure. We also look forward to seeing the next move Apple will make.

There is a proverb that states, "one man’s meat is another man’s poison." Different enterprises should have different answers. For future ICT enterprises, the evolution of the business model is bound to be exciting but different from that of the 3C integration. Voice communication applications, total Internet applications and entertainment video applications will all become basic demand of mobile applications, and be expanded along their own dimensions.

Every enterprise will base on their own advantages, product services and resources to define and expand different ecological systems. Through integrating industry chain resources, they will strengthen advantages in their strong fields, and take opportunity to penetrate into other services field. ICT firms which ignore users’ demands of integration and change will be one day ignored by its users.

About CCID Consulting

CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company’s business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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