InterDigital Inc (IDCC)

[olddog967]

Hydro_gen: I completely agree with you.

The term IoT is very broad in scope. Coming up with potential future revenue is dependent on how it is defined. The Cisco estimate of $14.4 trillion is not a revenue estimate, but as described, is a combination of revenues and cost savings:


“The Internet of Everything (IoE) creates $14.4 trillion in Value at Stake — the combination of increased revenues and lower costs that is created or will migrate among companies and industries from 2013 to 2022.

The five main factors that fuel IoE Value at Stake are: 1) asset utilization (reduced costs) of $2.5 trillion; 2) employee productivity (greater labor efficiencies) of $2.5 trillion; 3) supply chain and logistics (eliminating waste) of $2.7 trillion; 4) customer experience (addition of more customers) of $3.7 trillion; and 5) innovation (reducing time to market) of $3.0 trillion.”


The following is from an article titled “Clear Market Definition is Critical to Assess the Impact on the IT Market”, by well regarded Strategy Analytics, which comes up with entirely different (much lower) future amount.
 
Boston, MA – June 1, 2016- For key players in computing hardware, software, system integration, analytics, communications, and professional services associated with the Internet of Things, clear definition is critical in determining the opportunity for IoT. Analysis from Strategy Analytics has determined that the market for all elements of IoT is $150B in 2016 and will grow to $550B by 2025.
“In the history of technology market analysis, this is the first time people have been talking about a market in the extraordinary terms of ‘trillions of dollars’ with such a lack of clarity on market definition” said Harvey Cohen, President of Strategy Analytics. “Our research examined IoT market potential in terms of its relationships to global economies, non-residential investment, and total IT expenditures to produce a number with transparency on key assumptions.”

https://www.strategyanalytics.com/strategy-analytics/news/strategy-analytics-press-releases/strategy-analytics-press-release/2016/06/01/strategy-analytics-iot-market-worth-trillions-of-dollars---definition-is-critical-for-it#.WEmHvBTw89Z


As noted SA breaks the market down into six basic segments (computing hardware, software, system integration, analytics, communications, and professional services). I have seen other articles where similar breakdowns, using different terms, have been made. These segments are often broken down into more specific subsegments.

The question then becomes into which of the specify segments/sub segments does IDCC’s technology fit. In this regard IDCC appears to have placed it’s IoT licensing program under the Avanci platform. According to information on the Avanci website, their emphasis will be on licensing the device maker segment of the overall IoT market.

“Who should obtain a license from Avanci?
Manufacturers who are creating products for the Internet of Things and including wireless connectivity in their new devices should take a license from Avanci. Our licensing programs for connected cars and smart meters are up and running, and our programs for other connected products are coming very soon. If your company is in the process of bringing a new connected product to market,”