Technology

Why Tech is Targeting the $15 Billion Mattress Market

Published

6 years ago

January 11, 2018

Marc Doucette

Why Tech is Targeting the $15 Billion Mattress Market

On the surface, the sleep industry appears to be a relatively undesirable space for a startup.

Beds and mattresses are heavy and bulky, and sales are traditionally based on a tactile experience that consumers have with products in physical stores. Holding inventory is expensive and risky, and shipping is a nightmare.

Sure, people are willing to shop online for almost everything these days – but when up to 40% of life is spent lying on a bed, isn’t that a product that should be tested out before a purchase decision is made?

Strange Bedfellows

Despite the conventional wisdom to the contrary, the $15 billion mattress industry has seen the entrance of several ambitious startup companies, and they are starting to put a dent in market share.

Today’s infographic from Online Mattress Review tells the story of how disruption is occurring in this unlikely space – and it all starts with big changes to the business model to make online mattress sales more palatable for both the company and the consumers.

An Updated Model

Here are a few key ways online mattress companies, like Casper or Purple, have changed up their value proposition to customers to make life easier for themselves:

Money-back guarantee
By offering a money-back guarantee of up to 100 days, online mattress companies give customers plenty of time to test their product. This reduces the chance of buyer’s remorse.

Going all-in on memory foam
Memory foam, as well as other mattress types that can be compressed down in size, allow for fast and easy shipping. Consumers can take a box the size of a filing cabinet and easily navigate it around corners and doorframes in a household setting.

Fun, relationship-based marketing
To appeal to the millennial market, Casper has taken on some quirky initiatives, such as creating Insomniabot-3000 (a chatbot for people who can’t sleep), and a Labor Day Mattress “Sail” boat cruise.

Comfortable Growth

In 2016, the market share for online mattress sales was 5%, and it’s expected that the number for 2017 could be at least double that.

While tech startups and the sleep industry may seem like strange bedfellows at first, it’s clear that consumers are embracing the chance to get in bed with the idea.

Related Topics:startups tech mattress bed sleep casper purple

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Technology

Ranked: Semiconductor Companies by Industry Revenue Share

Nvidia is coming for Intel’s crown. Samsung is losing ground. AI is transforming the space. We break down revenue for semiconductor companies.

Published

2 weeks ago

April 9, 2024

Pallavi Rao

A cropped pie chart showing the biggest semiconductor companies by the percentage share of the industry’s revenues in 2023.

Semiconductor Companies by Industry Revenue Share

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

Did you know that some computer chips are now retailing for the price of a new BMW?

As computers invade nearly every sphere of life, so too have the chips that power them, raising the revenues of the businesses dedicated to designing them.

But how did various chipmakers measure against each other last year?

We rank the biggest semiconductor companies by their percentage share of the industry’s revenues in 2023, using data from Omdia research.

Which Chip Company Made the Most Money in 2023?

Market leader and industry-defining veteran Intel still holds the crown for the most revenue in the sector, crossing $50 billion in 2023, or 10% of the broader industry’s topline.

All is not well at Intel, however, with the company’s stock price down over 20% year-to-date after it revealed billion-dollar losses in its foundry business.

Rank	Company	2023 Revenue	% of Industry Revenue
1	Intel	$51B	9.4%
2	NVIDIA	$49B	9.0%
3	Samsung Electronics	$44B	8.1%
4	Qualcomm	$31B	5.7%
5	Broadcom	$28B	5.2%
6	SK Hynix	$24B	4.4%
7	AMD	$22B	4.1%
8	Apple	$19B	3.4%
9	Infineon Tech	$17B	3.2%
10	STMicroelectronics	$17B	3.2%
11	Texas Instruments	$17B	3.1%
12	Micron Technology	$16B	2.9%
13	MediaTek	$14B	2.6%
14	NXP	$13B	2.4%
15	Analog Devices	$12B	2.2%
16	Renesas Electronics Corporation	$11B	1.9%
17	Sony Semiconductor Solutions Corporation	$10B	1.9%
18	Microchip Technology	$8B	1.5%
19	Onsemi	$8B	1.4%
20	KIOXIA Corporation	$7B	1.3%
N/A	Others	$126B	23.2%
N/A	Total	$545B	100%

Note: Figures are rounded. Totals and percentages may not sum to 100.

Meanwhile, Nvidia is very close to overtaking Intel, after declaring $49 billion of topline revenue for 2023. This is more than double its 2022 revenue ($21 billion), increasing its share of industry revenues to 9%.

Nvidia’s meteoric rise has gotten a huge thumbs-up from investors. It became a trillion dollar stock last year, and broke the single-day gain record for market capitalization this year.

Other chipmakers haven’t been as successful. Out of the top 20 semiconductor companies by revenue, 12 did not match their 2022 revenues, including big names like Intel, Samsung, and AMD.

The Many Different Types of Chipmakers

All of these companies may belong to the same industry, but they don’t focus on the same niche.

According to Investopedia, there are four major types of chips, depending on their functionality: microprocessors, memory chips, standard chips, and complex systems on a chip.

Nvidia’s core business was once GPUs for computers (graphics processing units), but in recent years this has drastically shifted towards microprocessors for analytics and AI.

These specialized chips seem to be where the majority of growth is occurring within the sector. For example, companies that are largely in the memory segment—Samsung, SK Hynix, and Micron Technology—saw peak revenues in the mid-2010s.