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Deloitte: For the First Time Ever, More Than 1 Billion Smartphones Will Be Sold Globally in 2013

LTE Technology Rapid Upswing to Be Expected

"As in last year, in 2013 we will also experience a rapid rise in the popularity of internal social networks, which will become part and parcel of corporate internal communication,"

- Petr Viktora,
Director in the ICT Advisory of Deloitte

New York/Prague, 23 January 2013 – More than 1 billion smartphones will be sold globally this year. In terms of technology, 2013 will also bring a sharp increase in LTE (Long-Term Evolution) technology. Mobile advertising will be split into two categories – tablets and smartphones – and more than 90% of user-generated passwords will be vulnerable to hacking in a matter of seconds. These are the main conclusions for selected 2013 predictions published in the 12th edition of Deloitte Touche Tohmatsu Limited's (DTTL) Technology, Media and Telecommunications (TMT) Predictions report. The TMT Predictions 2013 report also forecasts the growing popularity of social networks, which are to become a part of internal communication in 90% of large businesses. However, the era of the personal computer (PC) is not over either.

"This year's predictions cover a range of interesting topics, from the continued dominance of personal computers, despite inferior sales relative to smart devices, the developments around LTE, and data access, to smartphones and the vulnerability of passwords," said Zdeněk Křížek, Partner in the ICT Advisory and Risk Management function of Deloitte.

"As in last year, in 2013 we will also experience a rapid rise in the popularity of internal social networks, which will become part and parcel of corporate internal communication. By the end of 2013, enterprise social networks (ESN) will be launched in more than 90% of large businesses, which is an increase of 70% compared with 2011. Only one-third of users will read the ESN messages once or several times a week and approximately 40% will post their own message on ESN once a month," said Petr Viktora, Director in the ICT Advisory of Deloitte.

"Social networks may become an effective tool for corporate internal communication. However, companies must still remember the legal aspects of employee privacy protection. As a great deal of employee personal data is usually processed on social networks, inappropriate setting of these systems may pose a threat of extensive sanctions being imposed on companies by the Office for Personal Data Protection," adds Jakub Hájek, attorney at law at Ambruz & Dark/Deloitte Legal.

"LTE high-speed data technologies will have a significant impact on the portfolio of services offered to consumers and companies. Operators offering this high-speed data network will have a considerable advantage over their competitors," said Zdeněk Křížek. "In terms of telecommunications, the Czech Republic can expect a very interesting year. We are convinced that the sale of LTE frequencies will finally be finished and we will also welcome new virtual operators," Křížek added.

The list of major 2013 TMT predictions:

  • For the first time ever, more than 1 billion smartphones should be sold globally in 2013 – Usage, however, will become increasingly varied and the number of smartphone owners will grow from about 400 million to 1.9 billion by year end.
  • More than 200 operators will launch LTE technologies in 75 countries by year end. The number of LTE users will globally triple to 200 million and LTE subscribers will generate approximately 10% of total income. The major benefits of transferring to LTE from 3G are likely to be a manifold increase in speed and the improvement of quality and comfort of working with mobile applications.
  • Enterprise Social Networks (ESN): More than 90% of the world's 500 largest corporations will have implemented social networks by the end of 2013, a 70% increase over 2011.
  • "Mobile advertising", led by tablets, will thrive, but smartphone displays will lag behind – "Mobile" advertising – a category including tablets, smartphones and feature phones – should grow by 50% to reach $9 billion globally. In 2013, the smartphone sector could generate $4.9 billion in revenues, while advertising on tablets may generate $3.4 billion. However, revenue per unit reveals a different dynamic: smart device display ad revenues are forecasted at $7 per tablet and $0.60 per smartphone (including in-app ads).
  • 4K digital standards, equal to 4000 pixels, kick off – 2013 will be the year in which the television industry starts preparing in earnest for the next iteration of high definition (HD) known as 4K, which offers four times the resolution of the current highest standard HD TV. The full roll-out of 4K will take several years. In 2013, 4K will only be in very few living rooms. There will be no 4K broadcasts in 2013, and there is little video content in this resolution so far. About 20 TV sets will be available to those wishing to spend $15,000 – $25,000 on a set.
  • The PC is not dead yet – Of total sales of PCs, tablets and smartphones in 2013, PCs will only make up about one-fifth. However, more than 80% of internet data traffic will continue to be generated on traditional personal computers (desktops and laptops). Of the total time spent at home and at work on PCs, tablets and smartphones, more than 70% will be on a PC.
  • Crowdfunding portals will yield profits – Crowdfunding portals will raise $3 billion globally, a 100% increase over 2011.
  • The BYOC trend ("Bring your own computer") will be adopted in only very few companies.
  • All you can app: Between 50 and 100 mobile operators will offer "all-you-can-eat" services with unlimited access to a specific application (such as social networks, e-mail, Google, videos etc), a middle ground between unrestricted all-you-can-eat tariffs and metered data charging.

Full details about the global TMT Predictions are available here:


About Deloitte

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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence.

© 2013 Deloitte Czech Republic


Lukáš Kropík
Deloitte Czech Republic
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