Ham Radio Operators

Amateur radio, also known as ham radio, uses a designated “radio frequency spectrum for purposes of private recreation, non-commercial exchange of messages, wireless experimentation, self-training, and emergency communication,” according to Wikipedia. Ham radio operations are coordinated by the International Telecommunication Union. Ham radio operators must demonstrate knowledge in electronics and regulations in order to obtain a license for their radio station. Once licensed, the ham radio operator can communicate with people throughout the world.

Amateur radio began in the late 19th Century. By the late 20th Century, the hobby’s
popularity was waning; however in the early 21st Century, ham radio saw a surge in the number of enthusiasts. By 2010, the number of ham radio licenses in the United States had increased 60 percent since 1981. In 2007, the United States Federal Communications Commission stopped requiring knowledge of Morse Code in order to obtain a license. The increase in ham radio licenses has been attributed to this. In 2010 alone, there were 30,000 new applications for ham radio licenses.

Today’s market share is the total number of people that have ham radio licenses in the United States.

Geographic reference: United States
Year: 2010
Market Size: 700,000
Source: Matt Sepic, “Ham Radio Growing in the Age of Twitter,” NPR, April 5, 2010, available online here and “Amateur Radio,” Wikipedia, available online here.
Posted on December 9, 2011

Home Entertainment Market

Home Entertainment Spending, 2000-2010

Today’s market size is the value of spending on the home entertainment segment related to films and all forms of videos that are rented and purchased, on DVD, CD, and downloaded electronically. The graph shows how this market has faired for the first decade of this century and shows that even the strong home entertainment segment has seen declines during the recession that started in December 2007. Actually, spending in this market peaked in 2004 and 2005 and has declined slightly every year since then.

Geographic reference: United States
Year: 2010
Market size: $18.8 billion
Source: “DEG Year-End 2010 Home Entertainment Report,” a report produced by the industry funded non profit corporation Digital Entertainment Group. The report is available online here.

VOIP Providers

Today’s market size is based on the revenues earned by Voice Over Internet Protocol (VOIP) providers in 2010. VOIP saw a tremendous 194 percent growth from 2000 to 2010. This industry is expected to grow another 17.4 percent from 2010 to 2016.

Geographic reference: United States
Year: 2010
Market size: $12.5 billion
Source: Phil Izzo, “Top 10 Thriving Industries,” The Wall Street Journal, May 16, 2011, available online here.
Original Source: IBIS World

App Store Sales

We hear a lot about “apps” these days, or application programs. But what are they, really. These are computer programs designed as standalone software to run on a variety of devices, usually mobile devices. These apps are sold through online stores and usually have a well defined and somewhat limited purpose. They usually have a filename extension “.app” for use on mobile operating systems such as Android; iOS (Apple); Linus; MeeGo; Microsoft Mobile; RIM (BlackBerry); and Symbian.

Apps are a class of products whose market is based on volume. The average price of an app is around $2.50, (reached with lots sold for 99¢ and a few sold for $9.00 plus) so a whole lot of apps had to sell in order to reach the market size presented below. There are 5 billion mobile device subscribers worldwide, according the the International Telecommunications Union (ITU). Now, all mobile devices are not “smart” devices and thus are not equipped to run apps. Nonetheless, based on the fact that an estimated 10% of these 5 billion devices are smart we can calculate, very generally, that each one of these smart device owners bought just under two apps in 2010. There seems room for growth here…

As a side note, that figure of 5 billion mobile device subscribers is rather noteworthy given that the world population in 2010 was just shy of 7 billion. Food for thought.

Geographic reference: World
Year: 2010
Market size: $2.15 Billion
Source: Whitney, Lance, “Report: Apple Remains King of App Store Market,” CNET News, February 15, 2011, available online here. Also, press release from the ITU which is available online here.
Original Source: IHS Screen Digest, February 2011

Mobile Phones Worldwide

The market size listed here is the number of mobile phones sold worldwide in the third quarter of 2010, of which, 19.3% were smartphones, as we saw in our last market size entry.

Geographic reference: World
Year: 3rd Quarter 2010
Market size: 417 Million Units
Source: “Gartner Says Worldwide Mobile Phone Sales Grew 35 Percent in Third Quarter 2010; Smartphone Sales Increased 96 Percent,” Gartner Newsroom press release dated November 10, 2010 and available online here.
Original Source: Gartner Inc.

Smartphones

The definition of a smartphone, according to PC Magazine, is as follows: “A cellular telephone with built-in applications and Internet access. Smartphones provide digital voice service as well as text messaging, e-mail, Web browsing, still and video cameras, MP3 player and video and TV viewing.” In addition to their built-in functions smartphones can run a variety of computer applications which makes them true computing devices. All of this functionality varies from smartphone to smartphone and to a large degree depends on the operating systems that run these devices. The leading smartphone operating systems, based on units currently in use, are (1) Apple’s iPhone OS, (2) RIM Blackberry OS, and (3) Google’s Android OS.

The market size listed here shows the number of smartphones sold worldwide in the third quarter of 2010. Smartphone sales in this quarter represented 19.3% of all mobile phone sales.

Geographic reference: World
Year: 3rd Quarter 2010
Market size: 80.5 Million Units
Source: “Gartner Says Worldwide Mobile Phone Sales Grew 35 Percent in Third Quarter 2010; Smartphone Sales Increased 96 Percent,” Gartner Newsroom press release dated November 10, 2010 and available online here.
Original Source: Gartner Inc.

Mobile Advertising Market

Mobile advertising is promotional activity designed to be delivered to cell phone, smartphone and other handheld device users. The market size presented here also includes Web-based search and display ads. As more consumers use smartphones and other handheld devices to access the Web, advertisers have devoted more money to mobile advertising. According to IDC, the mobile advertising market may double to $2 billion in 2011. Google had a 59 percent share of the market; Apple had less than a 10 percent share in 2010.

Geographic reference: United States
Year: 2009 and 2010
Market size: $368 million and $877 million, respectively
Source: Olga Kharif, “Google Gains Market Share in U.S. Mobile Ads,” Bloomberg Businessweek, December 3, 2010 and available online here.
Original Source: IDC

Internet Users Worldwide

The source for this market size is a poster offering a variety of interesting statistics about “our connected world.” Covered on the poster—a link to which is provided below—are statistics on the number of Internet users by country, broadband subscription rates by country, and numbers of people who have mobile only phone access by country. The data are presented graphically and we found it to be an interesting and useful presentation of the material.

Geographic reference: World
Year: 2010
Market size: 1.734 Billion Users, 20.8% of whom are in China.
Source: “Our Connected World,” made available online by buzzhunt.co.uk here.
Original Source: GigaOM, Cisco, and Internet World Stats.

Size of the iPhone Market

The number of iPhones reported here is a much rounded number. The iPhone represented only 2.2% of the worldwide cell phone market in 2009. Nonetheless, profits from iPhones represent a much higher percentage of total profits from cell phones. According to the source, Nokia had nearly twenty times Apple’s market share, but profits from the iPhone were nearly the same as profits from all of Nokia’s phones combined.
Geographic reference: World
Year: 2009
Market size: 25,000,000 units
Source: James Surowiecki, “The Financial Page: Soft in the Middle,” The New Yorker, March 29, 2010, p. 45