The Importance of“User-Facing, Patent-Protected Differentiators”               to Mobile Device ManufacturersFebruary 28, ...
Overview of the Mobile Device Market§  A big and repetitive game of catch-up with Apple§  Rectangular devices with faces...
Netbook Market Redux§  For non-Apple manufacturers, this quickly devolves into a    game of lowest cost to consumer§  We...
Different Business Models§  For non-Apple manufacturers who are looking to sell a certain volume    at a low price withou...
The Solution§  The solution is innovation by either acquiring or developing:       user-facing, patent-protected differen...
Why are these the solution?§  Two primary reasons   1)  The vast number of consumers do not care about the internal      ...
User-Facing Patent Protected                               Differentiators§  These drive buy decisions by consumers, crea...
Compound Devices Strategy§  We continue to believe that compound devices are a    critical goal for any manufacturer (rea...
Conclusion§  Consequently, for the reasons outlined in the preceding    slides, manufacturers should be aggressively impl...
Related white papers•    Topics in innovation in mobile technology by Yuvee•    NeoKeys – How it works and why it is criti...
Read or download the white papers§ www.yuvee.com/prWhitePapers.php§ www.slideshare.net and www.scribd.com§ Tim Higginso...
About Yuvee     §  Yuvee          •  develops and licenses advanced user interfaces and related             whole device ...
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The importance of patent protected differentiators to mobile device mfrs 2.2011

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This short "white paper" slide deck defines and outlines the critical importance to mobile device manufacturers of "user-facing, patent-protected differentiators."

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The importance of patent protected differentiators to mobile device mfrs 2.2011

  1. 1. The Importance of“User-Facing, Patent-Protected Differentiators” to Mobile Device ManufacturersFebruary 28, 2011 © Yuvee, Inc. All rights reserved. 1
  2. 2. Overview of the Mobile Device Market§  A big and repetitive game of catch-up with Apple§  Rectangular devices with faces of plain glass •  Highly undifferentiated from customer perspective ü  Android (or similar) OS ü  Rectangular glass front (3.5 to 11 diagonal) ü  Plain case, few buttons ü  Inward/outward cameras © Yuvee, Inc. All rights reserved. 2
  3. 3. Netbook Market Redux§  For non-Apple manufacturers, this quickly devolves into a game of lowest cost to consumer§  We just saw this in the Netbook market: A consumer goes into a store (such as Best Buy), and has a choice of at least 3 or 4 different netbooks by different manufacturers. Each netbook varies hardly at all from the customer point of view – pretty much indistinguishable form factor, hardware, memory, wireless, cosmetics, etc – only the brand changes§  This is a brutal game of (1) tiny product margins, lowest cost manufacturing and fulfillment, and lowest pricing, and (2) waiting for the market attention to shift to a new product category © Yuvee, Inc. All rights reserved. 3
  4. 4. Different Business Models§  For non-Apple manufacturers who are looking to sell a certain volume at a low price without any real impact on their EPS, market share, brand recognition, etc … and without the risk of being a market leader in innovation … this may be a viable game to play •  Apple, at this time and we project for a number of years still ahead, has successfully positioned itself and its product lines as the leading trend-setter from a number of perspectives: innovation in what matters to mobile users and successful development of “compound products” meaning an integration of iconic devices with a proprietary lifestyle ecosystem (iTunes)§  For most manufacturers seeking to compete with Apple, the lowest common denominator pricing business model is a losing proposition, and the question becomes … what is the solution? © Yuvee, Inc. All rights reserved. 4
  5. 5. The Solution§  The solution is innovation by either acquiring or developing: user-facing, patent-protected differentiators © Yuvee, Inc. All rights reserved. 5
  6. 6. Why are these the solution?§  Two primary reasons 1)  The vast number of consumers do not care about the internal specifications of mobile devices (smartphones, tablets, etc) •  so differentiating by way of internal components - slightly more memory, or slightly more processing power, etc - is not an effective means to drive a buy decision by most consumers, and especially not enough to create brand loyalty 2)  User-facing differentiators drive buy decisions by consumers, but if the differentiator is not patent-protected, every competitor will incorporate any meaningful differentiator in their next product release, ie, within one or two quarters © Yuvee, Inc. All rights reserved. 6
  7. 7. User-Facing Patent Protected Differentiators§  These drive buy decisions by consumers, create new market share, create brand loyalty, protect pricing from the lowest common denominator problem, protect product margins and move EPS up •  Consumers base buy decisions on mobile products by user-facing differentiators •  especially ones that add substantive value to consumers mobile lifestyle, which can happen in many ways (ease of use, scope of use, cool factor, better apps, more app developer commitment, etc) •  note that, differentiators that are protected by incremental patents on existing features do NOT play this important role •  Patent protection restricts competitors from rolling a company s successful (ie, substantively innovative from a consumer s mobile lifestyle perspective) differentatiors into the competitors’ next product release © Yuvee, Inc. All rights reserved. 7
  8. 8. Compound Devices Strategy§  We continue to believe that compound devices are a critical goal for any manufacturer (read our white paper titled Compound versus Elemental Devices ) but we also recognize that many companies cannot achieve this goal for any number of reasons§  Consequently, user-facing, patent-protected differentiators are an absolutely critical asset for any manufacturer seeking to compete in the mobile device market on a business model that does not rely on a lowest common denominator product price point © Yuvee, Inc. All rights reserved. 8
  9. 9. Conclusion§  Consequently, for the reasons outlined in the preceding slides, manufacturers should be aggressively implementing parallel strategies of •  acquiring patented, user-facing differentiators from third parties •  developing internal and external skunk works teams •  implementing organization changes so that these innovations have a quick time-to-market in the company s products © Yuvee, Inc. All rights reserved. 9
  10. 10. Related white papers•  Topics in innovation in mobile technology by Yuvee•  NeoKeys – How it works and why it is critical to touchscreen devices•  What is the NeoKeys Mixed Media Keypad?•  The Challenge of Touchscreen Clutter (or Making Mobile Screens Big)•  The Non-Subscriber Revenue Imperative – ROI on Telecoms CapEx•  Richness+Simplicity: The Holy Grail of Mobile UI•  Yuvee - Mobile User Experience Conference – UX Designers Den Slides•  Monetizing the Keypad Real Estate on Mobile Devices•  The Changing Face of User Input on Mobile Devices•  Compound versus Elemental Devices – New Mobile Device Market Strategies•  The Incredible Shrinking Search Results Page•  Dynamic Keypads: Terminology © Yuvee, Inc. All rights reserved. 10
  11. 11. Read or download the white papers§ www.yuvee.com/prWhitePapers.php§ www.slideshare.net and www.scribd.com§ Tim Higginson s profile on www.linkedin.com§ Find them using a Google, Bing or other search © Yuvee, Inc. All rights reserved. 11
  12. 12. About Yuvee §  Yuvee •  develops and licenses advanced user interfaces and related whole device designs for mobile and converged contexts that make the next generation mobile and converged lifestyle effortless and immersive, including the mobile Web and apps •  provides advisory services in multiple areas relating to mobile and converged devices including o  differentiated, physical and graphical user interface design o  mobile and converged device design o  business innovation management processes (“BIMP”) optimization §  Contact •  Tim Higginson at (847) 962-1623 or info@yuvee.com •  www.yuvee.comFebruary 28, 2011© Yuvee, Inc. All rights reserved. Patents issued and pending – see lists at www.yuvee.com.Yuvee and NeoKeys are trademarks of Yuvee, Inc. 12Other trademarks are the property of their respective owners. No relationship or endorsement is intended or implied.
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