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MakerBot’s ‘death’ won’t kill 3D printing

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MakerBot was synonymous with 3D printing a few years ago. But, even though it announced its lay off of factory workers, RACHEL GORDON, Technology Analyst, IDTechEx, believes that this is not the end of 3D printing.

Following the progress of MakerBot, it is easy to be despondent about the whole desktop 3D printing industry. For a short time back in 2010, MakerBot was 3D printing. Anyone who wanted a desktop 3D printer could buy a MakerBot kit or build a RepRap. MakerBot was the market leader and almost synonymous with desktop 3D printing for many years.

In April, MakerBot announced it would lay off its factory workers, outsourcing the manufacturing of all MakerBot printers to Jabil. This will reduce manufacturing costs, removing the fixed costs associated with maintaining a factory in New York City. Manufacturing in China will certainly be cheaper than in Brooklyn but MakerBot have run a “Made in America” campaign for a long time. This is another step away from the Rep Rap beginnings, and the 3D printing community are unhappy. This echoes when MakerBot announced the Replicator 2 would be closed source, after years of supporting the Open Source Hardware movement. These announcements make big waves within a small community of 3D printing enthusiasts, but it remains to be seen how much impact it has on new customers buying machines.

The slow decline of MakerBot

Before 2013, MakerBot sold an impressive 40,550 printers. When Stratasys acquired MakerBot, an IDTechEx analyst wrote, Stratasys “may have paid a very high price for a quick foothold in an ultimately relatively small market with an increasing number of competitors. If MakerBot has sold out to the big corporate world in merging with Stratasys… it got a jolly good price indeed.”

According to the Stratasys 2014 Annual Report, in that single year, MakerBot sold nearly 40,000 printers. In 2015, they sold just 18,673. In April of 2015, MakerBot laid off 100 of its approximately 500 employees and in October laid off another 80. The MakerBot storefronts in New York City, Boston, and Greenwich were all closed.

This was partly due to the poor reputation of the Smart Extruder on the 5th generation machines. Estimates for the mean time before failure for the MakerBot Smart Extruder were between 300 and 500 hours. Jonathon Jaglom, CEO of MakerBot, has said “86% of all failures of 5th gen MakerBots were with the extruder.”

MakerBot reached total sales of 100,000 printers on 4th April 2016. This equates to selling only 1,421 MakerBots in four months of 2016. Sales of desktop 3D printers are seasonal and tend to pick up in Q3, but the MakerBot brand is now worth far less than the $400 Million Stratasys spent on it.

Has desktop 3D printing failed to spread beyond early adopters?

When industry leader is struggling it is tempting to talk about the market saturating or the technology not overcoming the “chasm of despair” as it hasn’t spread past the early adopter enthusiasts.

However, in the new report 3D Printing 2016-2026, IDTechEx Research estimate that over 375,000 desktop thermoplastic extrusion printers were sold during 2015.

MakerBot have hundreds of competitors also making very similar desktop thermoplastic extrusion printers. The price can be very low and the quality is very variable.

The rise of China

300,000 of these 3D printers were sold by the Taiwanese company, XYZPrinting. These sales absolutely dwarf the 100,000 cumulative sales by MakerBot to the point where it seems almost unbelievable. The Chinese government pledged to put a 3D printer in every one of their 400,000 elementary schools.

The DaVinci printers are rebranded and distributed by tech giant Lenovo, who has substantial brand power. It is an increasing trend that well-known household names, such as HP, Ricoh, Autodesk and Mattel, are entering the industry with considerably more brand power and marketing budget that has been seen in the industry so far.

The DaVinci printers are available from $450, compared to $2000 for a MakerBot. At this low price, the technology has become available to many home users across Asia, who previously could not afford it. The average selling price of desktop 3D printing will continue to fall.

It is definitely the best quality 3D printer for this price. Out of the box, the printer is preassembled and precalibrated. Ease of use is a top priority of the education market. The printers are not only attractive to Asian customers but are getting attention and recognition across Europe and America.

The return of vendor lock-in

Users are required to buy all their filament through XYZPrinting. There is little, if any, profit to be made selling a $450 3D printer. However, now over 300,000 users are all buying filament at the currently reasonable price of about $29 for 600g, and will be locked in to buying more of that filament regardless of price hikes. This will stabilise the thermoplastic filament prices.

This is the beginning of a shift from Western companies manufacturing small numbers of 3D printers to consumer electronics manufacturing on a serious scale in Asia. This a standard pattern, new technologies are manufactured on a bigger scale at a cheaper price in Asia, and they become available to more of the global population. Unit sales grow, but price crashes.

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Now download a bank account

Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.

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This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.

“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.

“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”

The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:

  1. Download the Absa App
  2. Choose the account you would like to open
  3. Tell us who you are
  4. To keep you safe, we will verify your cell phone number
  5. Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
  6. Tell us where you live
  7. Let us know what you do for a living and your income
  8. Click Apply.

 

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How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

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Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

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