First of all, Microsoft announced this week that they would acquire Nokia’s devices and service business. This is an excellent example of what we expect will continue to happen in the M2M and embedded ecosystem. In this case, a larger, more highly capitalized supplier is able to integrate elements of mobile device solutions. This acquisition will allow the combined entity to gain market share that would not otherwise have been practical from a business perspective. For example, Microsoft will be far more capable of making strategic purchases of materials or R&D investments to create new, more competitive mobile and M2M products than Nokia would have been by itself.
Secondly, there were new wearable “smart-watch” products announced this week by both Samsung and Qualcomm, which will be competing with a similar product concept expected from Apple. These types of mobile products currently are not intended to replace Smartphones but, instead, to act as wearable interfaces to them. Because smart-watches are worn, as opposed to being carried or just located in the proximity of the user, we believe they will have several compelling M2M applications and uses. From a security perspective, the watch can act as an authentication device for the phone, another device, a car, or machine. If the phone is unexpectedly moved, the watch will alert the user. On a similar, but reversed, basis, the smart-watch will comprise a very tight M2M interface to communicate the status of the wearer to intelligent applications. This will enable many fitness, medical, safety, and security applications.
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